EUR Trading Outlook (03-03-2011)
The Euro (EUR) reclaimed 1.3800 in the European session as EU PPI accelerated to 6.1% y/y in January. The market is keenly awaiting today& rsquo s ECB announcement with expectations of talk about interest rate rises to address the increasing inflation threat. Overall the EUR/USD traded with a low of 1.3741 and a high of 1.3892 before closing the day around 1.3860 in the New York session. Looking ahead, ECB Rate Announcement forecast to hold at 1.0% and Press Conference with President Trichet.
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