The ECB kept headline rates unchanged at 1%, as expected. Focus now turns to the press conference in 45 minutes.
The risk would be that Trichet and Co protest EUR strength. A codeword to watch for is ” brutal” If Trichet says exchange rate moves have been brutal, that is the sign to the market that the rally has come too far for the ECB’s taste.
EUR/USD is holding onto support at 1.4367 as equities climb on the BOE move to print more money. Stops still lie just below the 1.4350.