The Euro leaped on Friday following the comments by the European Central Bank’s policymaker Ewald Nowotny . He stated that markets were far too fast to interpret as dovish the ECB interest rates policy and the comments of its president Jean-Claude Trichet. Yesterday the president’s comments were interpreted as no interest rates hike can be seen before July and also commented on the importance of a strong Dollar causing the Euro to lose over 300 pips in a day.
Following Nowotny’s comments today the Euro rose a near 60 pips reaching to 1.4586. Nevertheless the Euro gains were capped shortly after as traders stated sovereign offers causing trader to short the Euro. The EURUSD is currently traded at 1.4537.