On that note......
what you are saying is ..Euro dollars are US dollar denominated deposits...
Makes absolutly no sence to me....My brain works on the wysiwyg system of thought.....
what do you interpret for this comment???
The collapse of the Euro against gold awakened the German Bund vigilantes in Frankfurt for the first time in two years, which presents a major dilemma for “Tricky” Trichet. The ECB’s failure to follow through on its tough anti-inflation rhetoric at the April and May 2006 meetings, quickly sent gold up 50 Euros higher to 538 Euros/ oz and sent German bund yields a quarter-point higher to 4.00%. Behind the curtain, the ECB wants to stick to a three-month time table between rate hikes. If correct, the next quarter-point rate hike to 2.75% in June might be the only ECB tightening over the next four months, and unlikely to put a dent in the explosive growth rate of the Euro M3 money supply. Beyond its desire to keep equity markets buoyant, the ECB also aims to slow the Euro’s advance against the US dollar and Chinese yuan, to protect Euro zone exporters and multinational profits from abroad.