No 'Strong Vigilance' Pledged, Euro Plunges as Trichet Sounds Less Hawkish

The ECB left the main refinancing rate at 1.25%, after hiking it by +25 bps in April, at the May meeting. Policymakers omitted the reference 'strong vigilance' for a second month and viewed the monetary policy stance 'still accommodative'. The central bank pledged to 'monitor very closely' all developments with

USD Gains Amid Falling Commodities, Oil, Equities, and Less Hawkish Trichet

Following several weeks in which the USD was beat up on the back of expectations around its loose monetary policy, we have finally seen the USD strike back. Today it was against the EUR, as ECB President Trichet sent a signal to the markets that the ECB would hike rates