HiFX: Foreign Exchange Specialists

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June 13, 2008

The annualised consumer price index excluding food and energy remained unchanged at 2.3% through May.  However, it still continues to be above the Feds 2.0% target and highlights that inflationary pressures remain elevated.  Recent comments from various Fed. members have suggested that the FOMC stands ready to take appropriate action to bring inflation back inline with their target.  As such increased speculation for monetary policy tightening helped push the USD upwards of 1.0% against the Euro in particular.