Forex - EUR/USD hits fresh 2-month low on Trichet remarks
Investing.com
Published Sep 08, 2011 10:20AM ET
EUR/USD hit 1.3947 during U.S. morning trade, the pair’s lowest since July 12; the pair subsequently consolidated at 1.3986, tumbling 0.77%.
The pair was likely to find support at 1.3837, the low of July 12 and a four-month low and resistance at 1.4098, the days high.
Speaking at the ECB’s post-policy meeting press conference, Trichet said the euro zone economy was facing “particularly high uncertainty and intensified downside risks,” after the bank left its benchmark interest rate unchanged at 1.5%.
The ECB now sees growth for 2011 of between 1.4% and 1.8%, down from a previous forecast of 1.5% to 2.3%. Growth expectations for 2012 were revised down to between 0.4% and 2.2% from 0.6% to 2.8%.
Despite the risks to growth, Trichet reiterated that the bank's monetary policy stance remains "accommodative" and said the bank will continue to "monitor very closely" upside inflationary pressures.
Also Thursday, the Labor Department said the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly to hit 414,000, confounding expectations for a decline to 405,000.
The euro was also lower against the pound, with EUR/GBP tumbling 1.06% to hit 0.8720.
Later Thursday, Federal Reserve Chairman Ben Bernanke was to give a speech about the U.S. economic outlook, while U.S. President Barack Obama was to make a speech to Congress to propose new employment measures.
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Written By: Investing.com
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