FRANCE: The euro has advanced against the dollar and other major currencies following data showing higher inflation in the eurozone.
Official data showed eurozone inflation climbed to 0.3 per cent in May, the first rise in five months and an increase that lifted hopes of economic recovery in Europe.
The data came ahead of Wednesday’s meeting of the European Central Bank and a subsequent press conference with ECB Chief Mario Draghi.
‘While the ECB has never formally said it would do so, those in the camp of the ECB tapering its bond buying program before its projected September 2016 end date were just given significant reinforcement,’ said Christopher Vecchio, analyst at DailyFX.
Fawad Razaqzada, an analyst at Forex.com, said the pricing data, along with solid labour reports from Germany and Spain, are evidence the ECB bond-buying program is working.
‘However it is still too early for the ECB to turn hawkish, although any suggestions on Wednesday by Mario Draghi about an earlier-than-planned end of QE could see the euro surge even higher,’ Razaqzada said.
