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Thursday, December 07, 2006

EUR/USD: "We Do Not Pre-Commit" on Rate Moves- Trichet

Trichet says that the ECB does not pre-commit on rate moves (though it clearly pre-committed to this hike). He also says disorderly forex rates are undesirable. EUR/USD dipped toward session lows at 1.3275/80 before steadying. Dealers are on-guard for central bank bids after strong buying yesterday. EUR/USD trades at 1.3285.

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