Not a lot of drama from the ECB press conference though there may be some behind the scenes. Trichet made it clear that today’s move was not unanimously approved by the governing council. I’m sure the financial press is now burning up the wires to try and get a sense of how divided the council is. Clearly there was a camp holding out for more aggressive moves than today’s timid 0.50% cut to 1.5%.
Sovereign bids are seen on dips below the 1.2500 level dealers report along with protextion of 1.2450 barriers. Resistance is up at 1.2530 and 1.2575 near-term. We trade now at 1.2525