29 Apr 2014
All eyes on German CPI - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, highlights the relevance of the German CPI figures.
Key Quotes
"The release of the German CPI report for April will be in focus in the European trading session today. The report is expected to reveal that the annual rate of inflation picked up modestly in April."
"A weaker than expected reading would likely weigh only modestly on the euro by reinforcing pressure upon the ECB to ease monetary policy to help lift inflation back towards target. Tightening liquidity and rising short rates in the euro-zone are also increasing pressure upon the ECB to ease monetary policy in the near-term:.
"So far at least the euro has not strengthened further alongside the recent rise in euro-zone short rates reinforcing downside risks to already low inflation."
Key Quotes
"The release of the German CPI report for April will be in focus in the European trading session today. The report is expected to reveal that the annual rate of inflation picked up modestly in April."
"A weaker than expected reading would likely weigh only modestly on the euro by reinforcing pressure upon the ECB to ease monetary policy to help lift inflation back towards target. Tightening liquidity and rising short rates in the euro-zone are also increasing pressure upon the ECB to ease monetary policy in the near-term:.
"So far at least the euro has not strengthened further alongside the recent rise in euro-zone short rates reinforcing downside risks to already low inflation."