hmmmmm, page-17

What happened was the ECB increased interest rates to 4.25%, as expected, but the statement accompanying the release left out any reference to future increases. Trichet said in his news conference that the absence didn't mean he wouldn't raise them further, but the traders took it to mean this was it, as far as rate rises were concerned.

As with anything market-related, there was a massive over-reaction by traders and they knocked the Euro for six (two, actually - 2 full cents in about half an hour). Of course, gold followed.

So, not a conspiracy, just currency trader stupidity. Why you would dump the Euro for the dollar on this news, I have no idea. The interest rate differential between the two had just increased by 25bp and any Euro-negative interest rate moves would be an age into the future (in currency terms), if a t all.