Nowotny chooses his words carefully but euro rallies
- Eurozone economy improving but inflation still far from target
- Negative rates were necessary for awhile but question of distortion is dangerous
- Of course discussions have begun about tightening policy
- Agrees with Weidmann who said this is time to slowly let off the gas
Hawkish stuff from Nowotny is sending the euro higher. EUR/USD up to 1.1650 from 1.1630.
This has got to be annoying for Draghi who took great pains to keep the euro from climbing in last week's press conference.
