The EUR strengthened against most of its major counterparts yesterday, continuing to prove that for the time being that this is the solid currency that traders can rely on to provide them with steady profits. The 16 nation currency extended gains versus the Yen on Wednesday, to trade at about 134.70 amid a broad sell-off in the JPY. The EUR experienced similar behavior against the USD and closed at 1.5015.
The Pound also fell broadly against the Dollar and EUR, after Bank of England (BoE) Governor Mervyn King said weakness in the currency would help UK exporters and aid Britain's recovery from recession. Earlier in the global session, BoE Governor King emphasized the need for the UK economy to rebalance away from imports to exports, and said that a weaker Pound would help achieve this.
Looking ahead to today, the most important economic indicator scheduled to be released from the Euro-Zone is the Industrial Production at 10:00 GMT. Analysts are forecasting this figure to be decrease from its previous reading. Traders will be paying close attention to today's announcement as a stronger than expected result may boost the EUR in the short-term. Traders are also advised to follow the European Central Bank (ECB) President Trichet's speech at 19:00 GMT. This speech is very important as it is very likely to Impact the EUR volatility.