ECB chief Jean-Claude Trichet has a new interview in WSJ.
The gist: He’s sounding hawkish.
He’s insistent that austerity won’t hamper growth, and he’s worried about inflation, and the hint embedded in there is that a rate hike in the Eurozone could come later this year.
The euro has been rallying in recent weeks on Trichet’s perceived increase in hawkishness, and this will reinforce that. According to ForexLive, early indications are that the euro will rise again to start the new week, partly on the back of this interview.
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