ECB President Jean Claude Trichet has made his voice heard the past few days as he has tried to paint the EUR picture with bright brushstrokes. The EUR has enjoyed more stability the past week of trading and has actually turned in gains against the USD. Trichet has basically talked about his belief that the European Union will not suffer a double dip recession and that its growth outlook remains positive because of the austerity measures being taken across the continent. However, it must be pointed out that standing on the other side of the investment aisle remains a staunch and loud crowd that is not exactly pleased with mere words. Investors are basically asking where emergency money will be generated from if it is needed in order to not only bail out nations having problems with Sovereign Debt obligations, but also for private banks which may find themselves without proper liquidity. There will be no major economic data from Europe today, but the talking point about the hovering financial crisis in the E.U. will certainly remain critical. Criteria for European banks undergoing ‘stress tests’ remains a crucial point and the manner in which public officials make their pronouncements will continue to affect trading sentiment. The EUR remains a risk appetite battleground.
Written by bforex.com
