The euro halted its three-day rally today on the prospect that the European Central Bank would keep the interest rates at the current low level in the effort to reduce the negative impact of the budget deficits on the region’s economy.
Jean-Claude Trichet, the President of the European Central Bank, stressed yesterday the importance for the European governments to reduce the budget deficits in order to improve the confidence of the investors and the consumers. The economists say that the European economy is currently too weak to justify the interest rates hike.
EUR/USD traded near 1.2536 today as of 18:16 GMT down from its opening price of 1.2555.
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