The Euro has held its ground today against the US dollar after Eurozone CPI numbers hit the market above expectations.
At 7.26pm (GMT) the Euro was trading at $US1.1270 down 0.04 percent from yesterday’s trade.
The latest consumer price index figures came in at 1.2 percent on a monthly basis which matched analysts’ expectations.
The yearly figure rose to 0.0 percent from -0.1 percent and may take some pressure of the ECB in regards to further monetary easing.
Although a small increase, it may help inflation move towards the ECB’s inflation rate of around 2 percent and especially when the rise in oil prices starts to find its way into the economy.
This in turn may justify the ECB,s stimulus program that was increased in the past 6 months.
"When we get the base effect from oil prices in the second half of the year the whole debate around the ECB may change," Anatoli Annenkov, an economist at Societe Generale, said.
"It will become easier for the ECB... to argue its actions are having some effect." He added.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|