HiFX: Foreign Exchange Specialists

• Headlines

June 30, 2008

Inflation within Europe leaped to an all time high during the month of June reaching an annualized level of 4.00%.  Although this release may be too late to adjust the near term ECB decision on Tuesday, it may be a key point of discussion during the Q&A session which swiftly follows the rate announcement.  As it stands the market is poised to watch the ECB raise rates by 25bps taking the ECB Minimum Bid Rate to 4.25%.  Overall price action was muted in response to today’s data release as the market has already positioned itself accordingly over the recent trading sessions.