Wednesday April 20, 2005 - 12:43:42 GMT
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FX Today - www.fxtoday.co.uk
Inflation fears return
The March US consumer price increase was higher than expected with a 0.6% monthly increase and the underlying increase was double market expectations at 0.4%. There was a clear influence from energy prices with transport cots rising significantly, but there were also wider sources of inflationary pressure.
The dollar will strengthen in the short term, but the Wall Street reaction will be important in determining whether the dollar gains are sustainable.
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