EUR/USD yesterday seemed to be inclined to some mild profit taking after all the comments Fed chairman Greenspan made over the past days. Also some Fed members sounded still patient, taking away some dollar bullishness. This morning, EUR/USD stayed stable at the 1.19 zone.
ECB's Trichet made some comments in the FT newspaper. He said that risks to price stability are balanced and that the ECB did not signal any bias and keeps al options open. Concerning the FX rates he merely pointed out that the Boca Raton G7 communique was good. Apparently thus no changes will be requested to this statement and FX should thus play a lesser role compared to the past two meetings. Still, the conclusion must be that the bias for EUR/USD is lower: sell euro on distinct upswings versus USD. Today, the US durable orders are the main item on the eco agenda.
ČSOB - Investment Research