Euro Rallies as ECB May Raise Interest Rates Next Month

The euro rose today for the second day against the US dollar as European Central Bank President Jean-Claude Trichet said that the bank may increase the interest rates next month because of the inflation pressure.
Trichet said that “increase of interest rates in the next meeting is possible”. The inflation in the European Union already has risen above the ECB target of 2 percent because of the surging oil prices. The ECB kept the minimum bid rate unchanged at 1 percent today.
EUR/USD advanced from 1.3865 to 1.3940 as of 17:09 GMT today.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.