Euro Rallies on Latest Inflation Reading
April 16, 2008
March’s Euro Zone HICP data, a measure of consumer inflation, came in well above expectations at 2.7% y/y. The recent Euro Zone inflation data cements the outlook that the European Central Bank (ECB) will continue to maintain their current stance on monetary policy, effectively maintaining and potentially widening the interest rate differential between the Euro Zone and US. The Euro was strengthened against the USD on the news, with the Euro trading to all time highs of 1.5977.