- Inflation temporary, but must be closely monitored
- Inflation could move to the upside
- Upward pressure on inflation has so far not impacted our assessment that price developments will remain moderate over the medium-term horizon
He is trying to downplay the inflationary figures but the market smells the potential for a hike earlier than had been expected.
Trichet will do all he can to avoid a hike, however. “nothing to see here, move along”…
EUR/USD is in the 1.3240s as traders digest the inflation scare and the mixed US data.
