Forex Signals

Source: ForexYard

Today’s speech delivered by the European Central Bank (ECB) President Jean-Claude Trichet was a reminder to many that Europe still faces hardship, regardless of the progress which has already been made. The speech was part of a full-day conference in Madrid, Spain, titled Reform of the Financial System.
Trichet’s remarks served primarily as a warning [...]

Expects trend of tighter monetary policy to continue
Impossible to calculate irrational steps like Greece leaving the euro or restructuring its debt

Policy is for region as a whole

Liikanen tells German newspaper FAZ that that the ECB will prevent second-round inflation effects (wage hikes tied to inflation) . A Greek debt restructuring would not help fundamental economic problems, he says.
Inflation pressures in emerging economies is impacting the eurozone, complicating monetary policy, Liikanen says.

Hikes can be normalized more gradually by moving early
If ECB waits longer it would risk steeper rate hikes
Japanese quake will cut Japanese imports, raise public spending

EUR/USD is trading just above 1.4000 as Bini-Smaghi drives home the idea of rate multiple rate hikes to come.

Rates must adapt to new inflationary pressure
Debate on aid mechanism must end, must take action

EUR/USD is triggering stops above the 1.3850 level, trading as high as 1.3858 so far.

Region faces extreme uncertainty on government decisions; waiting for decisions
EFSF should increase flexibility

ECB must reaffirm commitment to price stability
Periphery nations must do away with wage indexing
Risks to having months of excess inflation

Central banks should stick to money markets in normal times (leave bond markets alone)
Should use unconventional measures in times of both boon and bust.