Archived IMT (2009.01.29)

EUR lost more ground after Trichet said he doesnt rule out any more interest rate cuts. Although Trichet signalled rates to be unchanged next month, today's remark may be interpreted by some participants that a rate cut could be in the works at next weeks Council meeting. This is inlikely to be the case by the a central bank accustimed to telegraph its policy moves ahead fo time. Greater than expected rise in German joblessness also added to the euros selloff. EURUSD is seen holding above the interim support of $1.3035, a break of which would see the $1.2980, which is a 61.8% retracement of the rally from the $1.277 low to the $1.33 high.