As was widely expected the ECB kept interest rates at 4.00%.
Muted reaction on the EUR/USD, currently steady at 1.4655.
Close attention will be paid to Trichet's statement! A hawkish statement could drive the euro higher, investors will be looking out for this.
The webcast could be watched from the ECB website at 8:30am EST, here
Followup: Trichet cites sustained economic growth... strong increase in inflation indicator... expects inflation to be above 2% in following months before moderating in late 2008... positive sign from labor markets... upwards risk to price stability... [crisis led to] large monetary shift to safe, liquid monetary assets ... ready to counter upside risks to price stability
EUR/USD at 8:47pm EST: 1.4660. Market is not surprised
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