To get John Authers’ newsletter delivered directly to your inbox, sign up here.
The US dollar might just have peaked, and if it has then a blog post by Christine Lagarde has a lot to do with it. The president of the European Central Bank chose Monday morning to post an essay to the ECB website, effectively setting out a new and more hawkish policy. Both the policy itself and the fact that she had felt the matter so urgent that she needed to launch it online between meetings helped strengthen the euro significantly against the dollar. The leap almost to $1.07 is clear from a currency chart:
