The Euro Is Surging

Comments made by European Central Bank governing council member Ewald Nowotny and reported by MNI have sent the euro on a tear this morning.

According to MNI, Nowotny said that while he doesn't welcome the recent appreciation in the euro, policymakers "have to live with" it, as ECB does not have any tools to combat it.

Nowotny said there was no realistic prospect of the ECB lowering its benchmark refinancing rate or deposit rate.

The euro is trading just north of $1.38, versus levels closer to $1.3750 before Nowotny's comments hit the tape.