The European economy is performing better, showing stabilizing signs after a decline at the fastest pace in at least 15 years in the first quarter. European business confidence rose for 30 percent in June, according to results showed this week. Jean-Claude Trichet, European Central Bank President assumed this month the worst of the recession may be past after the ECB shortened interest rates to a significantrecord low and promised to buy covered bonds to fight the crisis.

The euro-area economy may shrink about 4.6 percent this year and around 0.3 percent in 2010 accordingto the ECB forecasts. Trichet stated that the economy may contract "at much less negative rates" since July the year. In the first quarter, gross domestic product slid 2.5 percent.

Trichet Speech Announcement

On Monday, June 22nd at 8:00 AM EST, Jean Claude Trichet, European Central Bank Chief, is expected to talk about the current state of Europe economy recovery after the world financial crisis. At the Hotel Ritz in Madrid he will be speaking before a conference organized by the New Economy Forum and the Wall Street Journal.

The European currency is controlled by the ECB's Chief more than by any other single financial official. Thus his today`s speech may may effect the Euro position. As some market analysts expect, Trichet's speech will contain more positive words about the future of European economy and it may produce depressing influence on the Greenback. The EUR/USD remains at 1.4000 level.

Jean Claude Trichet is famous for his sentiment of inflation and broad hints that are closely analyzed being quickly acted upon by small and large participants in the currency markets.