Corporate foreign exchange news

Foreign exchange news: Euro stifled by ECB neutrality

Monday, 12 October 2009 10:03:20 GMT

The euro is expected to see downside risk this week as the European Central Bank's (ECB's) decidedly neutral stance on the currency causes concerns for traders.
According to Daily FX, recent statements from the central bank and its president Jean-Claude Trichet have highlighted the institution's aversion to a stronger euro.
"The euro ended the past week up against currencies like the US dollar and British pound, but ultimately the ECB's decidedly neutral stance during their recent monthly policy meeting creates some downside risks for the currency," commented Terri Balkas, currency strategist at the site.
Foreign exchange brokers are likely to be looking ahead to the publication of German economic sentiment data on Tuesday (October 12th), while eurozone Consumer Price Index data will also be closely scrutinised on Thursday.
Analysts polled by Bloomberg News have predicted that the German sentiment data will show a rise of 1.1 points in October, taking the index to 58.8.ADNFCR-2522-ID-19403217-ADNFCR
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