EUR/USD during the European session fell back quite outspoken from the
1.2350- to the 1.2270 area by noon, but US trading completely reversed this and by closing time the pair was to be found back at the 1.2350 area. A day for nothing thus. This morning, the EUR/USD pair retreated slightly, moving to the 1.2320 zone. The euro softness may have come on the back of some Trichet comments in Handelsblatt. He said 'The ECB may reassess its outlook for gradual euro zone recovery if consumer spending fails to pick up', but he also clearly stuck to the working assumption of this gradual recovery for now. He added that 'consumer confidence is lower than it should be at this stage'.
ČSOB - Investment Research