Trichet announces rates at 1.25%; Euro tumbles down

Thursday, 9 June 2011 04:01

European Central Bank President, Trichet, announced that rates were to be kept at 1.25%.  This was widely expected by the markets, causing no surprise.

Also as expected, Trichet used the well-known code words 'strong viligance'; indicating a very strong possibility of a rate hike next month, in July. 

The shot upwards for the Euro vs. Dollar didn't last long, as it lowered from 1.4620 back to 1.4600; only to continue following a downward spiral to 1.4540 as Trichet speaks about growing uncertainty.

Currently the pair seems volatile trading at the low level of 1.4530. 

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