The euro today again broke through to a new high at $1.3329. This was on the back of an unexpected decline in US consumer confidence. What seems to be happening is that any piece of good news in the US temporarily stems the rise, whilst bad news sets it off again. And this despite the fact that the the European Commission itself released some pretty depressing business confidence numbers for the eurozone.
Meanwhile ECB president Jean Claude Trichet meticulously failed to mention the possibility of central bank intervention in closely watched comments to the European Parliament’s economic and monetary committee, restricting himself to repeating that currency movements like the ones we are seeing now are ‘not welcome’. So we seem set to continue on towards the $1.35 level. What happens then we’ll see if and when we get there. As they say somewhere: “this ain’t done till it’s done”.