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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (5673)	3/30/2008 11:07:35 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 71456

THis is possible that there is another powerful EUR excursion. For the DX it is getting thinner by the day because the EUR basically the only currency carrying it. GBP, JPY, CAD etc are on the way side for some time.

To: Giordano Bruno who wrote (5673)	3/31/2008 6:15:35 AM
From: RockyBalboa	Read Replies (3) \| Respond to of 71456

UPDATE: Euro-Zone Mar CPI Surges To 3.5%; Higher Than Seen LONDON (Dow Jones)--Prices in the euro zone rose at their fastest ever rate and much more quickly than expected in March, with the annual measure of consumer-price inflation hitting a new all-time high of 3.5%, reinforcing the European Central Bank's hawkish attitude to interest rates. The annual rate of inflation for the 15 countries that share the euro was 3.5% in March, up from February's 3.3% rate, and well above the ECB's target of "below, but close to" 2%, a preliminary estimate released by the European Union's official statistics agency Eurostat showed Monday. That's ahead of economists' expectations of 3.3% and remains more than one full percentage point above the ECB's definition of price stability. It's the seventh straight month that inflation has been above the central bank's 2% target ceiling and is likely to mean the ECB's Governing Council reiterates its hawkish attitude to interest rates over the coming weeks. The uplift in CPI is "disappointing for the ECB and disappointing for the credit market," said David Brown, an economist at Bear Stearns in London. "There had been hopes that inflation might stabilize around the 3.3% level and then start to come down in future months as some more helpful base effects come through. But, with food and energy prices still very firm, the overshooting of the ECB's 2% target is likely to be greater and go on for longer," he said. Weak confidence indicators, the strength of the euro against the dollar and the threat of a U.S. recession had prompted many observers to say the ECB would cut interest rates in the second quarter of this year. But elevated levels of CPI inflation have lead the central bank's governing council to fret that workers will demand higher wages to offset the increased costs that they're incurring. Members of the central bank's Governing Council have consistently warned of the dangers of the high rate of inflation spilling over in to other areas of the economy, creating a wage-price spiral in which it would lose control of inflation. Mindful of this, the ECB continued to stress last week that it's focusing its attention on inflation risks, with officials such as ECB council member Axel Weber and Executive Board member Jurgen Stark pointing to the risk of higher interest rates. "With inflation still rising, the burden of bad data needed to shift the ECB's position on monetary policy is increasing too," said Eoin O'Callaghan, an economist at BNP Paribas.