In the ECB press conference after interest rate decision to keep it unchanged Trichet has indicated that The ECB evaluation of inflation is still the same in spite of the drop of HICP to 3.3 in April from 3.6% in March as the short-term evolution of the CPI is that we didn't change our position today in comparison with the last meeting. The ECB sees that the growth is to be close to its previous estimate near 1.7% this year. He has said that there are signs of an improvement in conditions in some financial markets but the money market is still in persisting tension. His speech has given a hope of a better growth performance latter this year which supported the single currency. The ECB caring of inflation upside risks looked great at these current oil prices above 120$ per barrel and high commodities prices.
The single currency declined below 1.5339 which was its previous low and the 38.2 Fibonacci retracement of the rise from 1.444 to 1.5902. The pair could compensate its loses but it is still exposed to form a lower high under 1.558
No major events to wait for today but hearing to Former Fed Chairman Greenspan Speaks in New York.
Best wishes
FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com
