Euro Surging After New Comments From Jens Weidmann

Wow!

Just Wednesday, German Bundesbank President and ECB Governing Council Member Jens Weidmann was saying that an ECB interest rate cut would be appropriate if new economic data warranted such action on the part of the central bank.

That, of course, made the euro go down.

This morning, at a speech in Washington, Weidmann says interest rates are "currently appropriate," and not to "expect too much" from a rate cut, as central banks can't solve structural problems.

Weidmann did say, however, that the ECB may reassess interest rates if the data change.

Below is a chart of the euro, which jumped to a high of 1.3127 against the U.S. dollar on the Weidmann comments but is now walking back some of those gains.

Earlier, the euro jumped on comments from German finance minister Wolfgang Schäuble that the ECB should reduce liquidity in the euro area, but subsequently erased all its gains before the Weidmann comments hit the tape.