Flash: Euro not a policy tool for ECB - ANZ

FXStreet (Guatemala) - Brian Martin, Senior Strategist at ANZ explained that the ECB has implicitly linked forward guidance with the exchange rate, but doesn’t target or use the euro as a policy tool.

Key Quotes:

"Focus for policy must be on monetary conditions and the reaction function to the euro’s path rather than the exchange rate itself."

"Since Draghi first explicitly spoke about the exchange rate on 6 March, the nominal effective rate has risen by about 1%."