Market News International is running one of their patented “ECB sources” stories. The story sees the ECB in neutral through the end of 2008, unable to ease because of outsized wage gains in certain EU states but unlikely to hike owing to economic weakness.
The ECB Governing Council is increasingly worried
about the eurozone’s rapidly cooling economy, but the inflation danger
is still too high to justify a shift towards easier monetary policy,
well-placed central banking sources have told Market News International.
The dip into the 1.4720s looks to have been sparked by the story. Prices have rebounded to 1.4750 soon after as asian and Russian bids were once again rumored on dips. That plus a $2.75 rally in oil is weighing on the buck. A large, powerful hurricane is forecast by the national hurricane center.
