-
Talking Down the Euro Won't Work
Mario Draghi is about to discover that what goes up doesn't necessarily come down. On Thursday, the European Central Bank revealed that "concerns were expressed about the risk of the exchange rate overshooting in the future" at its July 19-20 policy meeting. The euro duly dived to a three-week low; but its decline proved temporary. It's almost a decade since Jean-Claude Trichet, Draghi's predecessor at the helm of the ECB, tried and failed to jawbone the common currency lower. In November 2007, Trichet said "brutal moves were never welcome" in the foreign exchange market: "We would consider excessive volatility and ... (full story)