Global Newsbrokers Forex Service
Europe close at 16:17:02
EURO RETREATS AFTER TRICHET COMMENTS
Thursday, January 13
The euro is retreating in late
European trade in reaction to comments
from ECB president Trichet on
inflation. Meanwhile, today's batch
of US data has done the dollar no
harm, the figures being generally
shrugged off.
After today's ECB meeting as expected
left interest rates unchanged, M.
Trichet said that he sees euro-zone
inflation dropping below 2.0 per cent
this year. He also noted that short-
term price pressures stemming from the
strong oil price had eased, but that
some upside risks remain over the
medium term.
The remarks weighed on the euro as
they indicated that there remains no
urgency on the part of the central
bank to raise interest rates.
As for euro strength, M. Trichet
reiterated that last year's rise in
the single currency was `unwelcome'.
The euro has eased to $1.3211, with
sterling down to $1.8822. The dollar
is steady at Y102.38.
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