The euro dollar exchange rate is 0.149% lower on the day with EUR USD at 1.4072. The euro pound exchange rate is 0.108% higher with EUR to GBP at 0.8828. "The euro continued to benefit from support as a result of the German court ruling that the eurozone bailouts were legal. There was no major rally however, as the need for greater parliamentary involvement in the future still allows for plenty of uncertainty in future bailout scenarios," says Richard Driver at Caxton FX. Today’s session brings the Bank of England and European Central Bank interest rate decisions, which would surprise the markets if they were to change policy. Focus will be directed towards Trichet’s press conference for clues as to progress on the eurozone debt crisis and future ECB policy. Looking at the euro dollar pair we see it continues to trade below the $1.41 mark, with a Fed policymaker’s calls for QE3 stopping this pair from driving lower. The euro continued to trade fairly robustly yesterday as a result of the relieving German court ruling that the country’s role in the recent eurozone bailouts were legal. Also supporting this pair were comments from Fed policymaker Evans suggesting that further monetary stimulus is necessary for the US economy to avoid recession. German industrial production also hit a sixteen month high, which was supportive of the euro. EUR USD is likely to be sold on rallies, which will cap any real gains for the euro. Comments from Trichet are likely to provide the direction today, and risks look to be to the downside.

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