For the first time since 2006 the euro's voracious upwards trend is taking a vacation. Does this mean commodities will do the same? Considering the high correlation of an oil and the euro; we might see prices come down and give us a breather. As of right now Trichet has a neutral stance over at the ECB, however inflation has always been his foray. The market is finally starting to focus on the inflation comments in Bernanke's speeches instead of just sub-prime tobackles. This makes the trend for the Euro and commodities uncertain. If Trichet is going to raise interest rates becuase of hot inflation and bernake doesnt, this will most likey be just a pullback. On the other hand, if trichet was being a tough guy while global banks were slashing interest rates and his exports were getting demolished...the ECB might be singing a differnent tune.
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