Nov. 5 (Bloomberg) -- European prices are accelerating at the fastest rate in two years. Jean-Claude Trichet may abandon the European Central Bank's drive to raise interest rates anyway.
The ECB president, forced to pick sides within his divided governing council, is likely to support keeping the bank's main rate at 4 percent this week -- and probably for months to come, economists predict. If history is any guide, his next move may even be a rate reduction.
Could this mean EUR/USD pair topped out at 1.45, or close? That was a 2007 target for many currency analysts before all this hoopla about 1.50 started creeping in the past few weeks.
The ECB president, forced to pick sides within his divided governing council, is likely to support keeping the bank's main rate at 4 percent this week -- and probably for months to come, economists predict. If history is any guide, his next move may even be a rate reduction.
Could this mean EUR/USD pair topped out at 1.45, or close? That was a 2007 target for many currency analysts before all this hoopla about 1.50 started creeping in the past few weeks.
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on Monday, November 05, 2007 at 11/05/2007 09:17:00 AM.
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