FX Closing Comments

The Dollar slipped back today, largely as a result of an aggressive sounding ECB, who nonetheless decided to keep rates unchanged (2.75%) at their monthly meeting. Using the term "strong vigilance", ECB President Trichet sent the signal that rates would be rising in August. The Bank of England also left rates unchanged, but they do not hold press conferences. The Euro gains were tempered, however, by the possibility that tomorrow's payroll figure will be high. Expectations are calling for a figure of 175,000. The higher the number, the better for the Dollar. Given the current sentiment, it would seem that the risk is to the downside, and that a low number could easily provoke a bout of Dollar selling. The number will be released at 7:30 a.m. Central Time.