JP,

(From DailyFX Research Team)

Euro Collapses as Trichet Proves to be a Big Disappoint

"For the first time since 2007, the European Central Bank raised
interest rates by 25bp to 4.25 percent.  However despite this move, the
Euro dropped more than 200 pips when ECB President Trichet failed to
signal to the markets that interest rates would be increased again this
year.  Going into the ECB meeting, the Euro rose to a high of 1.5910,
indicating that currency traders were clearly banking on hawkish
comments. Instead, Trichet played down the prospect of more rate hikes
by saying he has "no bias" more than 5 times in the question and
answer session with reporters. For Euro bulls, having no bias is just as
bad as not having raised interest rates today.  Despite strong retail
sales, a sharp drop in the German unemployment rate and much stronger
than expected producer prices, the ECB was surprisingly neutral.  For a
staunch inflation fighter, it is quite uncharacteristic to have no bias
especially on a day when oil prices hit a new record high.  German
factory orders are due for release tomorrow.  A strong rebound is
expected but that may not have much of an impact on the Euro. "

The EURUSD went down 200 pips (from 1.5908 to 1.5696)
because, as explained earlier, the market "sold the news" after having
"bought the rumor" (weeks ago), and that Trichet - unexpectedly -
said he had no "bias"

However, the news having now been sold, reality will prevail again,
and we should see US Dollar weakness again next week, at the end of
the current (short term) correction.

EURUSD should go up again, and exceed 1.60 in the next few weeks
in a (final) move up (Waves V - 3, and V - 5) of the move up since Jan 2006,
before a Long Term correction will hit the Euro for real (target 1.40, and
possibly lower), in concert with the (expected) correction in the Price of Gold
(target $730).

In contrast, and inversely proportional to the above, the stock Markets
should finish their current down trend, and go up again...

Regards,

Patrick,
http://AnyGoldNow.com
THE Exchange Provider
Any Gold, Any time, Anywhere

----- Original Message ----- 
From: "JP May" <jpm@...>
To: <gold-silver-crypto@...>
Sent: 04 July, 2008 5:52 PM
Subject: [gsc] The ECB ...

it looks like the ECB did raise 1/4 point BUT then issued "soft language" ..

so, that's a little help for the USD.

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