This Week: The Dollar, The Euro, The Yen and The Subprime Crisis
The European Central Bank’s president is playing down prospects of further interest rate increases. They raised their benchmark lending rate to 4.25%.
“The monetary policies stance after today’s decision, contributes to achieving our objective of price stability. We are never pre committed. It is a constant feature of our monetary policy. We do what is necessary to deliver price stability in the medium term and be credible and that delivery. Thursday’s 0.25% increase will help bring inflation back below 2%. We saw the little bit of a rebound, but that was chili weakness for the zero after this decision”.
With the US off for the July 4 holiday, he really is damping down prospects of further interest rate increases. Traders took that as a bad sign, by selling the Euro down to a one week low against the dollar.
Nobody much likes the pound because of the UK subprime crisis. The pound has […]
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