Eurozone

The EU Current Account came out at -6.4B from the previous -10.6B.  A rise to -7.3B was forecast today.

The Italian Retail Sales number came out a touch better at -0.3% from the previous 0.0%.  A drop to -0.4% was expected.

Initially the EUR did firm up slightly following this data.  

EU Juncker: Euro area on the verge of recession, economic growth 'very weak'
ECB's Constancio: ECB always looks at data when making policy decisions
- Can not confirm that Euro zone is in general recession as of yet
- Maintaining inflation expectaions considered paramount
Spain Economic Minister Solbes: Monetary policy should be relaxed

NOTE how the ECB official remains stubborn.

Today, ECB's Trichet "surprised" the market with his rate hike predicition.  Is it really a surprise?   If you look at the numbers, it really is not. 

Read the special report on the ECB's inflaton dilemma and how they will most likely have little choice but to raise rates ahead.

CLICK ON THE PDF ATTACHMENT BELOW TO READ THE FULL REPORT

Thank you for choosing FXDD.

Greg Michalowski

Chief Foreign Exchange Analyst