Trade Desk Thoughts - European CPI Estimate

European CPI Estimate Actual 3.8%, Expected 3.9%, Previous 4.1%

Release Explanation: CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore gives an overall read of Inflationary pressures. It is the most widely used Inflation indicator of Central Banks, Institutions, and Governments. It is used to calculate Cost of Living numbers for Government programs. Each regional Central Bank will have their own CPI Target rate, and each will differ in line with the way they individually want to control the aspects of their own economies.

Trade Desk Thoughts: Euro Zone inflation came in slightly lower than was expected at 3.8%. Expectations had been for a drop to 3.9% from 4.0% indicating that we may have reached a peak in inflation. Inflation in the Euro-Zone had been running at a 16 year high. Despite the lower read it is too early to assume that inflation is no longer a problem

Forex Technical Reaction: The euro had very little reaction to the release and the pair continues to trade virtually unchanged from the Asian open.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.