HiFX: Foreign Exchange Specialists

• Headlines

May 15, 2008

Eurozone GDP picked up during the first quarter of 2008 by more than analysts had expected.  Despite Q1 GDP coming in at 2.2% ECB President Trichet cautioned that growth is not expected to be as flattering in the months ahead.  With annualised inflation data showing signs of easing and Trichet warning of growth slowing in the coming months, market expectations have now increased for an interest rate cut from the ECB prior to year end.  Following the data releases the Euro slipped nearly 0.5% against the U.S. dollar, as Trichet’s comments were quick to cap any potential gains for the Euro.