Fxstreet.com (Jakarta) - The EUR/USD fell to the 1.30 support, following European Central Bank President Trichet's comments that the ECB may announce unconventional measures at the May policy meeting. Any ambiguity in our medium-term policy direction would delay the return of sustainable prosperity, because that would undermine confidence, which is the most precious ingredient in the present circumstances, Trichet said.
The ECB is expected to cut its benchmark interest rate 25 basis points to 1.00% and may announce unconventional easing measures to boost economic activity. More aggressive easing may pressure the EUR/USD further in the short run but could bring a eurozone economic recovery forward; consequentially, supporting the pair in the medium term. If the 1.30 support is broken, the EUR/USD may fall to the 1.28 support, said Hans Nilsson, an expert analyst at CMS Forex.
For more information, read our latest forex news.