By God's Will, We wait today for the germane June CPI final reading which is expected to be as the preliminary reading at .1% and if we have had negative rate, this can effect negatively on the Single currency as Trichet is keeping downplaying the risks of the deflation indicating that it can be short lived since his press conference on the 4th of last month and he has repeated this last week after the ECB keeping interest rate unchanged at 1% that the ECB expecting the inflation to be from 0.1% to 0.5% in 2009. Trichet has tried last week to show the market that the current interest rate is appropriate, the current negative inflation rate is likely to be short lived, the gradual recovery is expected to be in the first half of next year and the current situation is not out of the ECB expectations.

Best wishes

FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com