The exchange rate euro stabilized and hopes for a miracle

Exchange rate euro increases volatile

In brief: The euro remains a major challenge for Europe. Trichet said the stability, but investors and speculators trusted official with difficulty.

According to the chairman of the Central Bank Jean-Claude Trichet, euro is not in danger and he remains a reliable currency. In an interview with German newspaper Frankfurter Allgemeine Zeitung Trichet also said that the changes in the currency market are due to shifts in investor sentiment and under the influence of speculators, which include hedge funds.

However, the question of a possible intervention in the foreign exchange market to support the single currency, which is the beginning of this year, weakened by 12% against the dollar, the chairman of the European Central Bank refused to answer. Restoring a single European currency by the end of the auction seemed abrupt, but not long, and now the euro / dollar holds near $ 1.2684, have adjusted to levels near $ 1.27. Exclude new attempts to climb higher on the background of profit taking bears is not worth it, but currency strategist at Westpac believe that growth will be unstable, and recommend levels near $ 1.2550 for sales with the expectation to increase the pressure and return the couple to the recent lows and then to support around $ 1.24, testing which is expected within the next month.

Anrey Torbinski
2010-05-22 07:29, Currency news.

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