The Euro surged across the board supported by the ECB, Trichet words and risk appetite. The EUR/USD bottomed at 1.4220 but rebounded sharply and rose more than 150 pips from daily lows, reaching a fresh high at 1.4373. At the moment the European currency is retreating, trading back below 1.4350.
“A rally in the EUR/USD incurred shortly after, Mr. Trichet reinforced his position on possible ‘selected default’ of Greece. With credit agencies still being concerned about a possible default, any signs of a negative rollover of debt for bondholders could structure a negative snowball effect. In turn, ECB is planning to off-set the problem before it occurs,” said Andrei Tratseuski from Forex Club.
The Dollar lost momentum in the market as stocks extended gains in US and in Europe amid risk appetite triggered by the ECB and better-than-expected economic data in the US.
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