 | |  | | EUR/USD: FinMins Not Yet on Board for Rate Hike
Boston, November 18: A
spokesman for the head of the Eurogroup of finance ministers, Luxembourg"s
Junkers, says that the view of the Eurogroup in unchanged and that the Euro zone
recovery is too weak to withstand the impact of interest rate hikes. Trichet is
tacitly acknowledging their opposition by assuring that rates will remain
accommodative when the ECB is done hiking. Many in the market view that vow as a
sign that ECB rate hikes will be minimal, perhaps as little as a one-off hike.
EUR/USD is consolidating above 1.1700 after sliding back from 1.1790/95 highs.
Tax-related repatriation and fresh speculative selling helped stall the rally
after stops above 1.1775 were triggered. Downside stops are eyed below 1.1700,
1.1685 and 1.1660, dealers say. |  |  |  |  |
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