The euro is likely to remain stuck in a $1.110-$1.1250 range for the time being
as the European Central Bank kicks off a review of its monetary policy strategy,
BMO Capital Markets says. The ECB's inflation target is one of the key areas of
its strategic review starting January, meaning investors "should look through
upside misses" on core consumer price inflation data, BMO FX strategist Stephen
Gallo says. "Though alterations to the ECB's reaction function could further
inflame intra-euro political tensions, we can't help but think that [Fabio]
Schnabel's appointment to the executive board will initially push the central
bank in the direction of tolerating higher rates of inflation for longer."
EUR/USD rises 0.3% to 1.1188.(
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