The ECB doesn’t officially have a currency target, but it does really

The euro briefly traded above $1.20 on Wednesday, the highest since 2021. That level has usually caused anguish for the bloc’s export-led economy.

In a surprisingly frank admission in July, ECB Vice-President Luis de Guindos said it would be “complicated” if the euro exceeded $1.20.

The fiscal cavalry is sadly still quite far away. 

It’s frustrating for ECB policymakers and EU politicians that they’ve got inflation under control, but they cannot get growth going. 

Adding to the sense of cosmic injustice, the US dollar is weakening despite its much stronger economy. 

You can be sure Donald Trump will claim it’s the result of his own genius.

Japan took action last Friday that caused the yen to rise in value by about 3%. 

Bessent said Wednesday that the US is “absolutely not” intervening to sell the dollar against the yen.

Marcus Ashworth Bloomberg January 29, 2026

https://www.bloomberg.com/opinion/articles/2026-01-29/the-us-dollar-is-kicking-europe-while-it-s-down

 

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