The EUR gained yesterday even as Germany released bad Retail Sales numbers. The gain in value by the Single Currency against the greenback on Wednesday may prove to be a short term move on the belief by some that the EUR has been oversold. The ECB will hold its monetary policy meeting and press conference today and it is likely that Claude Trichet will outline that the central bank is maintaining its path. What will be of interest for investors will be the words that President Trichet chooses to express his sentiment for the economic prospect of Europe. The E.U. will release its Revised GDP figures today and a result of 1.0% is forecasted. Investors seem more prepared to expect sluggish growth from Europe than they are from the U.S., maybe this is because they are used to seeing Europe grow in a rather mundane manner. However, the fear that slow growth and a struggling economic future could develop into a genuine downturn has not gone away and the ECB will get a chance to wage its ‘propaganda machine’ against this today.
Written by bforex.com
