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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: pogohere who wrote (36368)	6/30/2008 2:57:59 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 218868

OOOOOOHHHHHHHHH - France's Sarkozy: Euro Is 30% Overvalued To The Dollar PARIS (Dow Jones)--French President Nicolas Sarkozy said Monday that the euro is 30% overvalued against the U.S. dollar and added that the European Central Bank should look at growth and not just inflation data to set interest rates. Sarkozy also said that the current high rate of inflation is due to a hike in the price of raw materials and increasing interest rates won't do anything to quell the rise in prices. Euro-zone consumer prices surged in June, hitting a new record of 4%, Eurostat data showed Monday. Earlier this month, the ECB signaled it was ready to raise interest rates from 4.0% to 4.25% at its July 3 meeting, in a bid to tame inflationary pressures in the currency bloc. At a press conference in early June, ECB President Jean-Claude Trichet said, "A modest rate hike next month isn't excluded; it isn't certain, but it's possible." Trichet's comments shook the market, which had been expecting the ECB's next move to be down as weak confidence indicators, the strength of the euro against the dollar and the threat of a U.S. recession damp growth in the currency bloc. The market has now fully priced in a July interest rate hike and is likely to interpret Monday's news as further confirmation. -By Gabriele Parussini, Dow Jones Newswires; 33-1-4017 1740; gabriele.parussini@dowjones.com