18:04 EUR/USD: Consolidation Continues after Jawboning] Boston, June 6. The
past several months have been remarkable in that European finance ministers have
mostly refrained from trying to talk down the EUR. The gloves came of today
though as Junkers, the head of the Euro Group, Solbes, the Spanish finance
minister and former EU economic czar, as well as Grasser, Austria"s finance
minister. While the group will claim not to be trying to influence ECB policy,
the stepped up attack on the EUR two days before the first ECB meeting in years
where a 50 bp hike will be discussed is hardly coincidental.
The IMF is weighing in with similar sentiments, saying there is room for some
tightening of ECB policy but that conditions for substantial tightening are not
in place. The strong EUR is hindering Eurozone growth and the strong EUR signals
the need for caution on rates.
EUR/USD is consolidating losses in the low 1.2820s. 1.2800/10 bids are eyed on
dips; more are seen at 1.2780/90.