The EUR gained strongly against the USD on Wednesday on a day without any major surprises from economic data. Today the ECB will hold it monetary policy meeting. It is clear that there will be nothing done regarding interest rates from the ECB, but what investors will be keen to monitor are the comments made by President Trichet at his press conference. Trichet has spoken a couple of times this week so it stands to reason that he will express his rather optimistic yet cautious remarks again for market consumption. The Final GDP figures were released yesterday for the E.U. and they met expectations with an outcome of 0.2%. Today the German Industrial Production numbers will be released and carry an estimate of 0.8%. The crux of the matter for investors though will continue to be ‘the management’ of the financial crisis that embroils Europe via the ECB. Also in the background are news leaks regarding the ‘stress test’ of banks in the E.U., and there is the possibility that President Trichet may get his chance to speak about the subject today. The EUR has done well this week on heightened risk appetite and the question is how long it will last.
Written by bforex.com
