EUR-USD Reacts to Comments by ECB's Trichet

EUR-USD briefly traded on easier footing in early European trade after ECB’s Trichet said that he feels we are still in a period of economic contraction, adding the free fall is over, but we must remain cautious. The EUR quickly rebounded back to levels seen previously in the session. Meanwhile, the German June trade surplus came in at EUR 11 bln, with exports up 7% m/m and imports up 6.8% m/m. Buy orders are noted in to 1.4330, while offers are noted from 1.4380, which should see range bound activity ahead of today’s key U.S. NFP data. On the options side there modest size expiries at 1.4400, which could be an influence as the session progress, although this will be dependent on how U.S. NFP fairs. EUR-USD is trading close to 1.4365.