The euro reversed early gains yesterday after Jean-Claude Trichet, president of the European Central Bank, disappointed some investors that had hoped that the central bank would step up its hawkish rhetoric.
The ECB, as expected, left interest rates on hold at 4 per cent after its monthly meeting. However, it was the post-decision statement from Mr Trichet that was the focus of attention as investors searched for the code-words that have heralded recent changes in eurozone monetary policy.
