Fri, 06 Nov 2009 00:00:00 +0100

EUR Rises on ECB President Trichet's Comments

The EUR experienced a bullish trading session yesterday, as it appreciated against most of its major currency pairs. The 16-nation currency extended gains versus the Japanese Yen during yesterday trading session, to trade above 1.3495 amid a broad sell-off in the JPY. The European currency finished around 100 pips higher against the CHF to finish yesterday's trading session at the 151.15 level. The EUR got a boost after European Central Bank President Jean-Claude Trichet presented an optimistic tone on Euro-Zone growth, saying the economy will recover next year. Both the ECB and the Bank of England left Interest Rates unchanged on Thursday. The decisions came after the U.S. Federal Reserve on Wednesday held borrowing costs near zero percent, and kept its commitment to low rates for an extended period. Looking ahead to today, the most important financial indicator scheduled to be released from Europe is the German Factory Orders. Analysts are forecasting this figure to slightly decrease from its previous reading. Traders will be paying close attention to today's announcement as a stronger than expected result may continue to bolster the EUR in the short-term.

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