No Bullshit Forex Blog, A Part of No Bullshit Network

So Euro maintained its Interest Rate at 4.00%

Source: Bloomberg on Euro Rises; Trichet May Signal ECB Key Rate Has Yet to Peak

Oct. 4 (Bloomberg) — The euro snapped three days of declines against the dollar on speculation European Central Bank policy makers won’t signal that borrowing costs have peaked after today’s rate-setting meeting.

The ECB kept its benchmark rate at 4 percent today, as forecast by all but one of 55 economists surveyed by Bloomberg, while it assesses the impact of a credit-market slump and the euro’s appreciation this year. President Jean-Claude Trichet will hold a press conference at 2:30 p.m. in Vienna.

“We’re seeing fresh euro strength today on speculation the ECB will stress it’s maintaining its vigilant stance on inflation,” said Neil Jones, head of European hedge fund sales in London at Mizuho Capital Markets. “Trichet is also going to want to stress his independence from those politicians calling on him to stop the euro strengthening further.”

The euro rose to $1.4112 by 12:50 p.m. in London, from $1.4090 yesterday in New York.

French President Nicolas Sarkozy said Sept. 20 Europe may be less competitive if borrowing costs aren’t reduced. Prodi expressed his concern about the strength of the euro in a conversation with German Chancellor Angela Merkel.

The comments have stoked expectations that policy makers of the ECB, the 27-member European Union and the Group of Seven nations will discuss currencies at meetings in Washington that begin Oct. 19.

To contact the reporters on this story: Gavin Finch in London at gfinch@bloomberg.net ;

Let’s look at the charts. It looks nice for a little retracement before heading towards north again.

Popularity: 23% [?]

Share This