I leave for three lousy days and you guys send the dollar into a freefall? Well, I’m back, and so is the greenback.
The Bank of England ain’t buying the recovery story, driving the pound down to 1.6825 before a bounce and EUR/USD has followed suit, falling back to 1.4368 thus far. Trailing stops are looming below the 1.4350 level in size, traders report.
Next up is the ECB decision at 11:45 GMT. No move on rates is expected though it will be interesting to see if M. Trichet takes this opportunity to talk down the EUR. The last thing Europe needs amidst a disinflationary environment is a strong currency to further throttle its exporters.