The euro rose almost a full percent to $1.3101 by 6:45 am in New York this morning as speculation grows that the European Central Bank (ECB) will provide an aggressive action plan to deal with spreading European debt. The Bank is scheduled to meet tomorrow and some analysts suggest the region’s central bank will announce wide-spread bond purchases to prop-up sovereign debt.
“Trichet reluctantly refused to rule out the possibility of expanding government-bond purchases,” said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. in London. “There’s a possibility the ECB could step up to the plate sometime soon. Do I think there could be a euro bounce today? Yes. Do I think it will be sustained? Probably not.”
Source: Bloomberg