Single currency lost early gains yesterday following the ECB statement

The single currency eased off from strong early gains as the ECB made tepid comments about the eurozone’s recovery, stoking risk aversion.

• The single currency trimmed early gains against the greenback yesterday, as the ECB announced that it was not going to change the current 1.00% interest rate.
  
• Jean-Claude Trichet’s comment that the interest rate in the September one-year tender would remain at one percent, dampened demand for the single-currency.
  
• On releasing the news, the euro fell back from its high of 1.4346 to close the day at 1.4250.
  
• The euro also suffered as early gains in the equity markets were lost in the afternoon, diminishing risk sentiment and sending investors back to haven positions.
  
• Important information about US unemployment is released today at 13:30BST, with analysts suspecting that the overall rate will continue to rise slightly, dampening hopes of a quick recovery.
  
• The G20 also convene for their first meeting today and their statements are likely to have a significant impact on the currency markets.