ECB highly anticipated press Conference shoot Euro upwards

Thursday, 5 May 2011 01:01

UK Services PMI (Purchasing Managers' Index) came out earlier today with weaker news than expected.  April's Activity Growth fell from March's 57.1 to 54.3; while expectations circled around 55.8.  The 2.8 point drop didn't help the British currency; as the Streling dropped against the Dollar to trade at 1.6282.

EUR/GBP is trading just above the 90 cent line at 0.9016.

Furthermore, anxiously anticipated news is being awaited; The European Central Bank has scheduled a session which will take place later today where the ECB president Trichet will dicsuss and focus on the pressure of inflation.  Interest Rate was raised by ECB in April to 1.25% from 1%; so traders everywhere are looking for clues of a rate hike.

The European currency is reacting along the lines of the highly anticipated news by looking hawkish and ready to hit a 17-month high.  Some investors point the possibility of the Euro trading above the 1.50 zone versus the Dollar. 

EUR/USD opened today's trading session at 1.4829 and is presently trading at 1.4847.  EUR reached a high of 1.4868 against the USD