[B]British Pound Rises On 15 Year High [/B]Sterling mounts historic advance, taking out the 2.0000 level as consumer prices rise 3.1% in the UK. The figure warrants a letter from MPC. The figure is likely to place weight on this weeks Bank of England minutes.
[B]EURGBP Plunges On UK Data - [/B]Powered by UK higher prices EURGBP cross plummets through 0.6775 support. The consumer price report countered a much stronger ZEW survey. Both current and economic sentiment sub indexes were significantly stronger in Germany.
[B]European Central Figures Warn Of Oil [/B]Stating Monday, European Central policy makers noted that continually rising crude oil prices will likely lead to the biggest inflationary danger to the current expansion in the Euro zone economy. Rising sentiment of further rate hikes continues to mount, even after seven rate increases since December 2005.
[B]Traders Expect Full Days Schedule [/B]US Consumer prices are expected to remain benign at the core level while being supported in the headline figure. The lower tick would continue to support underlying dollar bearishness as Fed waits on the sidelines. Subsequently, the release may be exacerbated with a lower than expected industrial production figure.