Wednesday, July 02, 2008

ECB Vicious Cycle

A prelude to tomorrow's ECB meeting (25bp hike all but certain).

From Macro Man


Indeed, the ECB is fighting a lonely battle. Despite risk to growth stability, I guess they are doing the right thing. As the German finance minister during the 1960's once said:"price stability may not be everything, but without price stability, everything is nothing." A rate hike by the ECB, coupled with weak payrolls, will probably send euro to record highs.

From CitiFX Technicals:

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