The president of the European Central Bank, Jean-Claude Trichet, continues have a strong and positive impact on the Euro. In another public appearance, Trichet reiterated his tough stance about inflation and continued to communicate a rate hike next week. This saved EUR/USD from losing support. Trichet spoke at his country, in Paris, and said inflation rates are durably above the price stability target. Though not using his usual code words “strong vigilance”, the repeated hint was clear. So, unless something extreme happens next Thursday, a rate hike is coming to the Euro-zone. Apart from this April rate hike, hikes of additional 75 basis points are prices by the market until the end of the year. There are speculations that April’s rate hike may be even larger. EUR/USD recovered from the area of 1.4030, an important support line, and managed climb above 1.4110, close to the levels seen on Friday. Significant resistance appears at 1.4160, followed by a huge cap at 1.4282. For more technical levels and events, see the EUR/USD Forecast. The market continues to value the talks about a rate hike from Trichet and his colleagues. Mersch has also been outspoken about this issue. And the markets tends to quickly forget about the burning issues around the debt crisis. Irish banks are closer to “sharing the burden” of losses with senior bondholders, something that will rock the whole European banking system. Portuguese yields on ten year notes have already left the 8% mark behind. Ireland got a bailout after its yields passed the 7% mark, and the Portuguese government already collapsed. A senior ECB official, Nowotny, already calls for Portugal to take a bailout, and says its the most logical thing. Note that hawkish comments from the other side of the Atlantic, from Plosser and from other members of the Federal Reserve, had a similar impact on the US dollar, but the meeting of the US FOMC is due only on April 27th, while the ECB meeting happens next Thursday, April 7th. Further reading: Chances of QE3 are very slim. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Principles of Elliott Wave Analysis Yohay Elam 12 years The president of the European Central Bank, Jean-Claude Trichet, continues have a strong and positive impact on the Euro. In another public appearance, Trichet reiterated his tough stance about inflation and continued to communicate a rate hike next week. This saved EUR/USD from losing support. Trichet spoke at his country, in Paris, and said inflation rates are durably above the price stability target. Though not using his usual code words "strong vigilance", the repeated hint was clear. So, unless something extreme happens next Thursday, a rate hike is coming to the Euro-zone. Apart from this April rate hike, hikes of… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.