Dealers note good buying on dips from about the 1.2500 level in EUR/USD on down toward 1.2450 where another barrier is eyed. 1.2422 is technical support.
Trichet indicates more rate cuts are to come, using his pattened phrase ” we will very closely monitoring all developments” ,
Staff projections for growth and inflation have been slashed by the ECB staff. Growth is now seen at -3.2% to -2.2% from -1.0% to flat. Inflation is now seen -0.7/+0.7% from +0.5%/1.5%.
The ECB is way behind the curve and that is why the euro is weakening.
