What has changed now to cause the euro to rally?
Absolutely nothing, post finished.
I suppose I should clarify that further shouldn’t I?
Whenever we get a sudden big move or a surprise we always want to know the reason. For me it’s easier (at first) to try and not get bogged down in the minute details. Take Drgahi’s speech. It only had a minor effect today. If anything the euro rose because every time he speaks the market expects a very dovish remark. I didn’t see any additional dovish comments, and in fact, it could be construed as being hawkish when he said that inflation is bogged down by global forces. That comment shows recognition that the ECB can’t fight all inflation with policy. But there I go getting into those minute details. The euro hasn’t risen 90 pips on that. It is rising because it’s a continuation of what happened yesterday.