American focus: Trichet’s speech extends to support EUR [E]

EU currency continued to strengthen against the dollar on the U.S. session. Remind, main reason of interest’s renovation to euro was ECB President Jean-Claude Trichet commentaries, which renew speculation on interest rates rise in Europe to contain inflation.

“ We aren't satisfied with inflation in our own area”, - Trichet said in a speech to a European Parliament. “We'll continue to do all that's necessary to counter inflationary risks and anchor inflationary expectations.

Remind, that report June 16, showed inflation in Eurozone was 2.5% in May, exceeding ECB’s 2.% ceiling for 16 months.

“ The euro's move is purely a reflection that there's no change in Trichet's approach,” said Simon Derrick, chief currency strategist in London at Bank of New York. “It's very consistent and let's people know rate hikes are coming down the line.”

Trichet’s speech was accelerator of USD long positions’ closing process after unsuccessful testing of important supports and it’s too early to speak about sustainability of european currency growth. USD slump keeps within frameworks of technical correction.

“I am more bullish on the euro than the dollar down the road,” - said Robert Houck, a currency trader at Wells Fargo Bank. “Trichet is slightly more hawkish; he repeated the need to be “vigilant” on inflation.”

The U.S. stock market opened trades with rise of major indexes. In case of economic news’ absence, investors’ optimism caused by positive corporate results of Morgan Stanley, FedEx and Ford Motor. Growth proceeds now. It is possible to predict, that before closing of trades situation will not change.