Simply, 2.6% y/y CPI should form an Inflation pressure in Euro zone can force the ECB to open the door for further single currency appreciation amid these current high oil prices. The figure is away from the ECB target. The tightening outlook of the interest rate differential between the single currency and the greenback contains the current market sentiment after the sub-prime mortgage negative impact and the expectation of further slow down of the US economy.
We wait for US Fed's decision and language.
Best wishes
FX Consultant Walid Salah El Din Mob: +20 12 465 9143 E-Mail: snipped-for-privacy@fx-recommends.com
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