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What Did Trichet Say to Cause a Drop?
Euro is taking a heavy beating today as Trichet’s comments were not to par with market expectations. Let’s reiterate the reasons for a severe drop of the Euro against the United States Dollar on the Trichet’s comments: 1) Despite the fact of vigilance of interest rates, further interest rates are uncertain – Mr. Trichet’s regarding the interest rates were already clear, interest rates will be increased in June. Yet, when faced with a question of whether the rates will be increased 3 months after July, Mr. Trichet comments suggested that they will not be increased. Bear in mind that Mr. Trichet leaves his ... (full story)
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