The euro declined for the second day following European Central Bank President Jean- Claude Trichet’s assessment that the risk of inflation within the Eurozone is “broadly balanced”. The market interpreted the comment as further evidence that the ECB is not considering a rate hike in the near term.
Ã¢â‚¬Å“The market got a little bit ahead of itself in pricing in an interest-rate hike as soon as this summer,Ã¢â‚¬Â said Jane Foley, a senior currency strategist at Rabobank in London. Ã¢â‚¬Å“We donÃ¢â‚¬â„¢t expect the ECB to be hiking rates until October or November so thereÃ¢â‚¬â„¢s room for a little bit of disappointment, which could result in a correction in euro-dollar.Ã¢â‚¬Â
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