Any further rate adjustments will be nothing big.More big Euro gains could boost case for another cut.
The exchange rate is getting problematic for the ECB. It’s not the level they look at but the speed of change, which has been pretty aggressive. ECB’s de Guindos earlier mentioned that “euro gains beyond $1.20 would be more complicated” suggesting that 1.20 could be their “pain threshold”.
This article was written by Giuseppe Dellamotta at www.forexlive.com.