Forex: ECB governor’s speech gives so rise to the Euro

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The Euro made gains against most of its major currency pairs with more gains to be expected in the short term following today’s speech by Jean-Claude Trichet. The governor of the European Central bank stated that the inflation rates in the Euro zone are now durably above the common definition of price stability. He also stated that it is crucial to avoid having major economic differences between the Eurozone members as this could lead to more competition and conflicts between the members when making decisions for debt struggling countries and hence could be harmful for the inflation.

Following Trichet’s speech the Euro made a 0.1 percent for the day against the US dollar rising at 1.4095 while previously in the day the single currency dropped to nearly 0.3% following the news of Angela Merkel’s loss at the elections. The EURUSD pair is currently traded at 1.4092.