Euro Rose on Support of ECB Rates

The euro rose today during the early Forex trading session, as the European politicians changed their mind on the ECB interest rate policy and traders became more confident that Jean-Claude Trichet won’t reduce the rates this week.

The ECB used its every recent statement to convince the market participants

that the inflation is a bank’s primary concern and that it won’t go for lower rates to sustain the economical growth. Meanwhile European government officials insisted on lower rates and a weaker euro to ease the pressure on the exporters.

Now the politicians from France, Belgium and Luxembourg, who previously insisted on weaker euro, agree that the current inflation rate is dangerous and that ECB shouldn’t lower the interest rates in this situation.

The European Central Bank refuses to follow Federal Reserve and Bank of England decisions to cut interest rates on the background of the global financial turmoil. Hawkish stance on rates allows euro to further appreciate against the other currencies.

Today EUR/USD rate increased 1.5429 to 1.5494 as of 8:29 GMT — the first daily growth after two days of dollar rally. EUR/JPY followed the trend and went up from 162.44 to 163.01 as the carry trade positions strengthened and the yen fell.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.