ECB does not target the exchange rate, but it is an important variable: de Guindos

Reuters reported that the European Central Bank vice president Luis de Guindos said.the ECB does not target the euro exchange rate in its policy, but it is an important variable and the bank monitors it when assessing the effects on price stability.

De Guindos, who was answering a question on the appreciation of the euro exchange rate at a press conference after of European Union finance ministers in Berlin.

EUR/USD update

The single currency is in a phase of the distribution and the EUR rebounds proved relatively short-lived despite yields edging firmer following the ECB last week.

This may be the case considering that the upside changes to staff macroeconomic projections were, if anything, less than markets had anticipated given leaks earlier in the week.

On the charts, there are downside prospects in the following technical analysis as follows:

• The Chart of the Week: EUR/USD in distribution, bears waiting for breakout confirmations