Tue, 19 Oct 2010 00:00:00 +0200

EUR Sees Mixed Results after Trichet's Weekend Comments

The EUR experienced mixed results yesterday against its currency counterparts. Against the Japanese yen the euro had fallen, but pared its losses to currently trade little-changed at 113.26 as of this morning. Against the British pound, the 16-nation single currency rose modestly, climbing towards 0.8800, but falling just short before turning back downwards. The euro lost somewhat against the US dollar yesterday after weekend comments from European Central Bank (ECB) President Jean-Claude Trichet supported the bank's purchase of government bonds issued by weaker euro zone members. Trichet's remarks contrasted with those of the head of the German central bank, who last week said the ECB should wrap up its bond-purchasing program. Today traders are expecting the release of the ZEW economic sentiment report from Germany and the region in general. Forecasts are for a decline in both figures, which will no doubt put sell pressure on the EUR going into a light news week.

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