Trichet's Comments Behind Euro's Latest Upswing

Shortly after euro dropped on comments from Eurogroup Pres Juncker indicating that reluctant Ezone members would have to pay up in the event the IMF did not pay its next tranche of aid to Greece, the currency rebounds on the following: FX traders now referring to a WSJ story titled: "Trichet Signals ECB Rate Rise Isn't Imminent". Trichet stopped short of

Trichet stopped short of using code words of imminent tightening such as "strong vigilence", said the WSJ, but still noted that summer tightening remained likely. Markets News Intl (MNI) reported Trichet's Berlin comments earlier Thursday: "We are carefully monitoring the situation and we stand ready to do whatever is necessary to fulfill our mandate -- just as we have done over the past twelve and a half years." Trichet added: "This logic applies not only to our policy interest rate but also to the other measures we have adopted in response to the crisis". "Let me emphasise that our non-standard measures do not in any way impinge on our capacity to tighten our monetary policy stance in response to inflationary pressures." Subsribers of our Premium Product will have access to MNI's FX Bullets, a 24-hour stream of news, analysis & insights on FX/debt/commodities. Click here to subscribe: http://www.ashraflaidi.com/products/sub01/

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