EUR/USD: Confirms Market Expectations for December Hike

In the Q&A with reporters, Trichet went out of his way not to dissuade the market from expecting a rate hike in December, he would not comment on 2007, beyond saying they will do what is necessary to deliver price stability. On EUR/JPY, he said that he sticks by his statement in Singapore at the G-7 meeting. At that meeting he said the G7 "discussed growth in the Japanese economy and the exit from the zero interest rate policy. The yen will reflect these developments." EUR/USD and EUR/JPY are easing in the wake of the comments. 1.1265/70 is support.