Forex Pros – The euro dipped against the U.S. dollar on Wednesday, following media reports that Bundesbank president Axel Weber is not a candidate to replace Jean-Claude Trichet as European Central Bank President.
EUR/USD hit 1.3662 during European morning trade, the daily high; the pair subsequently consolidated at 1.3636, up 0.08%.
The pair was likely to find support at 1.3571, Tuesday’s low and resistance at 1.3824, the high of February 3.
Deutsche Bundesbank declined to comment on reports by Reuters that it would make a statement later in the day about the professional future of its president.
Weber, a hawk on inflation, had been widely considered as the most likely candidate to replace incumbent ECB head Trichet when his contract as president expires in late October.
However, German media reports have outlined alternatives for the former university professor, who has run Germany’s central bank since April 2004, including a return to academia or a transition into the private sector.
The euro was also higher against the pound, with EUR/GBP rising 0.13% to hit 0.8491.
Also Wednesday, official data showed that Germany’s trade surplus rose more-than-expected in December, increasing to EUR14.0 billion, up from EUR11.8 billion in November.
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