With the G7 communiqué failing to address the depreciation of the greenback and the rapid appreciation of the Euro, it appears that the European Central Bank and European finance ministers have resigned to the currency’s strength.
However, ECB President Jean-Claude Trichet clung to US Treasury Secretary Henry Paulson’s “strong dollar policy” comments, though this particular statement has done very little for the greenback in the past and is highly unlikely to anything for the currency in the future. As a result, any bullish economic data out of the Euro-zone or remotely hawkish commentary from ECB officials over the course of the next week may only serve to provide a bid tone for the Euro.