Back to the conference yesterday, at last meeting euro sold off, because, as reported, Trichet did not say "strong vigilance". euro fell 2%. This time, he did indeed say "strong vigilance", and euro fell 1% immediately after he said it. What should we make all this? To me, the ECB is like a bunch of clueless college professors. They say they're independant but from outside of Trichet's office window he can see Berlin. And we all know how much Berlin hates inflation.
The Euro wouldn't be this high if it were for a weak dollar.