Here is how the European Central Bank will cap the rising euro

ECB Governing council member Francois Villeroy de Galhaus (Governor of France’s central bank) spoke Wendesday.

He said (amongst plenty more) that the ECB needs the ability to exceed 2% inflation without it triggering monetary policy tightening
CIBC suggest that this is a piece of indirect jawboning that could help slow the rising EUR/USD
CIBC says the European Central Bank does not much room for more rate cuts and thus comments like this, allowing inflation to overshoot, is the best way to address the rising euro
stem the tide of EUR appreciation against the USD”
On a perhaps related note the Federal Reserve Vice Chair, Richard Clarida spoke afterwards and said the Fed too wanted to overshoot – wants inflation above 2% for a year (and achieving the employment goal) before hiking.