Trichet is vocal that EUR was not created to be ‘the’ reserve currency.

His speech today covered two important aspects. Their views on growth and exit strategy and secondly the EUR. In respect to growth, European policy makers remain cautious and are aware that the recovery will be a ‘bumpy road’. Being ultra-conservative in nature, it would be imprudent to ‘call the end to the crisis and not an appropriate time to talk about the good time’. ECB is expected to leave rates on hold and ‘wait until non-standard’ measures expire in a few months. As for the currency itself, Trichet makes it blatantly clear that the ECB are ‘not willing to see the EUR as the main reserve currency. He went on to say that volatility in the Forex market was not welcome and all policy makers support the policy of a strong USD. One has to believe like most other Cbankers out there, they are all concered about their own domestic currency appreciating too much!

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell