ECB Meeting boosted the EUR/USD Pair

By IBTimes Staff Reporter | June 11 2010 2:35 AM

The Euro ended higher against the U.S. Dollar yesterday supported by Bernanke. In his speech he claimed that the U.S. is committed to ensuring the survival of the euro. The Euro also received local support from Trichet who approached the media right after the European Central Bank (ECB) meeting. Trichet announced that the ECB would buy back Europe bonds if necessary, this came less than 24 hours after a previous announcement stated they would not intervene in the bond market. Trichet also announced the ECB would keep rates at 1%, but this came with no surprise as it came with line of forecasts. The change in ECB strategy helped to boost the EUR against its major counterparts.

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The Euro climbed 100pips versus the U.S. Dollar yesterday while investors gain renewed confidence in the European currency. The EUR/JPY pair was also up currently trading above 111. Fears of the European fiscal debts faded yesterday and in general investors responded by selling safe haven currencies and returning to riskier ones.

The faith in Euro might continue during today's trading session if news published thorough the day come above forecasts. Traders should continue to monitor statements of financial leaders, because lately they influence the currency market even more than news events. No major speeches are planned today.