EUR/USD rallies back, Trichet comments cited

EUR/USD has finally managed something resembling a decent bounce. Having closed out around 1.3280 in North America Thursday it’s presently back up at 1.3343.

The trigger for the short covering rally seems to have been Trichet. The ECB’s head honcho has come out endorsing the Greece aid plan, his comments in contrast to earlier ones which had denegrated IMF involvement. Having opined IMF involvement as being ”very, very bad” Trichet has followed up by saying he is extraordinarily happy that euro zone countries have found a workable solution. You’d think a man in his position would choose his words a little more carefully, or maybe you wouldn’t.

Anyways, not much at all on the euro zone data front as we head into the weekend:

07:45 GMT: French consumer confidence indicator for March expected -32 from previous -33.

Talk of sell orders at 1.3340/50, which are so far capping the recovery. Probably buy stops parked close by above 1.3350.

Day 2 of the EU summit in Brussels. so can expect plenty more comments from various luminaries. Deep joy…….