The Euro is facing another growth period and will probably overcome the 1.60 point this time. Today we had no new European economic numbers however the inflation continues strengthening that may cause some new actions from European Central Bank aimed at the interest rate hike. Despite the slightly decreasing economic numbers the inflationary trend is the important trouble before the European Central Bank. However according to European Central Bank officials the possibility of interest rate hike is quite small despite the inflation problems. Moreover, the consequences of the situation occurred are quite obvious right now – consumer spending decreases. This is the reason why the European Central Bank may avoid the interest rate hike. However the situation will be clearer after the release of the PMI data on Wednesday The situation with Euro/USD makes us think that the markets don’t know where the news will come from – will it be the USA or the European Union?
As for the Swiss currency it has increased after the certain inflation growth. The increased in the last month producer prices made the Swiss franc reach the highest level in relation to Japanese Yen for the last 17 years.