ECB on hold

The ECB held rates steady today even as the Bank of England raised their base rate by 25bp. Trichet said that the ECB were "Monitoring all developments of essence". The key word left out of his comments today was Vigilence. By the elimination of this word the Euro came under heavy pressure as the market percieved that future rate hikes may not be a certain thing.

Emerging Markets are very shacky. Asian currencies were under pressure all session as were selected Latam currencies. Liquidity in the short dates (used to fund positions) were very tight today. With the long weekend ahead I expect that pressure will continue into tomorrow both for the currency and funding.

Why does the dollar remain strong against the majors? Answers...Please provide me with an answer!

Good Luck and Good Trading.

FXTRADINGIDEAS@AOL.COM