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Forex - Euro dives on dovish ECB comments

From news_archive.php?id=65430

(Updates with full report) LONDON (Thomson Financial) - The euro fell sharply on dovish comments from a euro zone central banker, giving the US dollar some support to counter its recent weakness based on expectations for aggressive Fed rate cuts. Dovish comments in an interview with Yves Mersch, Luxembourg central bank chief and member of the European Central Bank, suggested the European Central Bank may change tack and start considering rate cuts -- in stark contrast with its previously transmitted view. Mersch said in an interview that 'there are factors that mitigate inflation risks' and suggested the ECB could ... (full story)

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