The EUR experienced moderate bounces in positive price volatility today following news from European Central Bank (ECB) governor Jean-Claude Trichet. In an anticipated move, the ECB decided to hold interest rates steady while declaring growing stability for Greece. Trichet declared that there was little fear of a sovereign default by Greece in the future and the impact was gripped by short-term bursts in EUR growth.
Following the announcement by Trichet, the EUR exited its recent week-long downtrend against the USD and bounced back towards 1.3355 by the end of yesterday's trading. Against the GBP the EUR witnessed two sharp spikes after the announcement by the ECB, but was unable to sustain its growth and fell back into its downtrend, sending a wave of chatter among analysts that a similar fate was due for the EUR/USD in today's trading.
With little news expected from the Euro-Zone today, the prospects of a USD bounce-back are moderate. But the United States will also be absent from the calendar, pushing the odds closer to 50-50. A number of French and German industrial figures are expected and could help the EUR hold its gains, should they reach market expectations.