EUR/USD: Lower ECB Inflation Range Stalls Rally

The devil is in the details, as they say. After an upbeat opening assessment got the market long EUR/USD, Trichet announced that the staff forecast for CPI had been revised lower to 1.5-2.5% in 2007 from 1.9-2.9% in its September forecast. Money supply growth remains rapid though, he says. EUR/USD is very whippy either side of 1.3300.