Mr Trichet is expected to indicate that the ECB will start hiking rates in coming months. With inflationary pressures building across Europe, the ECB have little choice because a major part of their charter is to fight inflation. The strength of the language he uses will have a major impact on the EUR/USD and of course on the crosses.
The speculative market may be sitting long EUR against the USD but the bigger macro players are also heavily short pairs like EUR/CHF and EUR/AUD. If these accounts start covering then the EUR will be closer to 1.45 than 1.35 very quickly. Could be a big night.
