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Fund managers expect the ECB to talk down the euro rather than take concrete action, since the currency's strength largely reflects dollar weakness. The euro had risen from $1.06 in March to briefly top $1.20.
Officials are concerned because a stronger euro hurts exports and pushes inflation further below target.
Investor doubt that the ECB can cap the euro suggests currency-driven price effects on imports and exports may persist, which matters for euro-zone demand for dollar-priced feed ingredients.
ft.comTommy Stubbington in London, Martin Arnold in FrankfurtSep 8, 2020After 129 past neutral macro events, Euro (USD per EUR) moved a median -0.1% over 5 sessions (45% higher; middle half -0.5% to +0.5%), and +0.1% over 20.
After 359 past neutral macro events, US Dollar (Broad) moved a median -0.0% over 5 sessions (49% higher; middle half -0.4% to +0.4%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
