The Greek deficit was the main subject of ECB president Trichet’s press conference, which was held shortly after the central bank announced the decision to maintain its minimum bid rate at 1.00% on Thursday.
Trichet told reporters in Frankfurt that “a default is not an issue for Greece”. He also believes that Greece has the means to resolve its situation without the need of any bailout from either the EU or the IMF.
Trichet mentioned that the Greek crisis delays the ECB’s exit strategy and prevents it from tightening its monetary policy. The Bank of England also decided to maintain its interest rate unchanged at 0.25% on the same day.
The EUR/USD got a small push amid Trichet’s comments. The euro previously dropped below 1.3300 on a negative Retail Sales number for the month of February (-0.6%). The German Industrial Production disappointed as well when it showed no growth for the month of February.
The GBP/USD continues to trade sideways, but is down for the day at 1.5180.
US Unemployment Claims
U.S. Unemployment Claims unexpectedly rose by 18K to 460K last week, higher than the expected 434K. Although the number is much smaller than that of the same period of last year, economists say the claims must fall to around 400,000 in order to indicate a stabilizing labor market.
On the other hand, market experts expect an increase in volatility in the jobs claims in the following weeks due to the Easter period.
The dollar remained stable upon the data release. The USD/JPY is steady around .9300.
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