Bullish on Euro

Euro-Zone CPI is ahead and I expect Euro to outperform other currencies, and I see the dollar and the yen as possible candidate for selling in favor of Euro. The reasons:

• CPI is more interesting when the ECB expressed concerns on inflation and clearly said it is going to raise interest rate as soon as the next meeting.


• Lehman Brothers is to report the quarterly results tomorrow which is likely to revive concerns on credit strains and the need holding interest rate low.


• I expect that any positive effect from the last week G-8 summit start to fade as we enter the new week.