Forex Blog: Currency Trading News & Analysis.

April 5th 2007

Euro reaches two-year high against USD

The demise of the USD continues, as the Euro rolls in the opposite direction, touching a two-year high against its American counterpart currency.  Analysts attribute the Euro’s sudden resurgence to the opposite directions that EU and US monetary policy appear to be headed.  In America, the question is no longer if rates will be lowered, but rather when they will be lowered.  Meanwhile, as Europe’s economy expands on the heels of export growth and strong industrial activity,
prices are rising and the European Central Bank is talking about raising rates. Bloomberg News reports:

ECB President Jean-Claude Trichet said he wants to ensure price stability in the euro region. Interest-rate futures contracts show the ECB is likely to raise borrowing costs by a quarter-percentage point by September while the Fed makes cuts.

Read More: Euro Jumps to Two-Year
High Versus Dollar on ECB Rate Outlook

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Central Banks, Euro | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.