IB FX Brief: Euro Slips As ECB Hike Gives Investors Cold Feet |
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April 04, 2011 |
April 2011 Bond Updates
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One month ago ECB Governor Trichet remarked that it should be no surprise to see his central bank vote through an increase in the main refinancing rate at the April meeting. The single currency has cemented gains above $1.4000 since then on prospects for a widening yield differential to establish itself. Only now investors are demonstrating some regret that the central bank will don its one-size-fits-all policy as it pulls away from a record low era for monetary policy. Yet the softer recovery at the edges creates nervousness over the ailing health of its peripheral members and is now weighing on the shared currency even ahead of Thursday’s meeting.
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View more at: http://blogs.forbes.com/greatspeculations/2011/04/04/ib-fx-brief-euro-slips-as-ecb-hike-gives-investors-cold-feet/
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