The Euro fell by the largest amount in over a month on speculation that the European Central Bank will be forced to verbally intervene in the currency this Thursday.
An article in the Financial Times talked about the recent the discontent amongst European politicians and exporters on the impact of the strong currency on foreign demand. ECB officials have been relatively quiet about the Euro?s strength which suggests that they are still trying to figure out themselves whether or not to address the currency?s recent movements. They are leaving it to Trichet who has the big task of figuring out if the risk to growth is greater than current inflationary pressures.
Written by Kathy Lien, Chief Currency Strategist for DailyFX.com