Climbing Oil Prices Spike Rise In Eurozone Inflation

By David Schutz,

THE TAKEAWAY: European inflation rises -> Climb attributed to rising oil prices as Iranian crisis hits markets -> Breaking inflation news fails to influence the Euro in the short term

The inflation rate in the 17-member Euro bloc rose to 2.7% on the year this past January, the European Union’s stats office said today. Economists had predicted a rise to 2.6%.

The rise comes despite a far-reaching economic recession caused by the current debt crisis, and was attributed to geopolitical tensions out of the Persian Gulf which have caused a jump in oil prices. Iran is currently embroiled in a dispute with the United States and her Western allies regarding the controversial Iranian nuclear program, which the West alleges is for military purposes. The rising tensions have caused oil prices to fluctuate, with Iran cutting of oil shipment to a number of European nations.

Meanwhile, Europe’s economy is struggling to gather strength after shrinking in 2011’s fourth quarter. Oil prices have increased 23% over the past year.

The Euro was not directly affected by the latest inflation data. However, r ecent gains above 1.3325 have ended a bout of multi-session consolidation and could open the door to the next upside extension.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/01/Climbing_Oil_Prices_Spike_Rise_in_Eurozone_Inflation.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

More from Currencies

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue Skid Toward $7,000 as DOJ Launches Investigation

Bitcoin Today: Prices Continue Skid Toward $7,000 as DOJ Launches Investigation

Bitcoin Today: Prices Plummet Below $8,000 in Market Downturn

Bitcoin Today: Prices Plummet Below $8,000 in Market Downturn

Bitcoin Today: Prices Slip as Broader Crypto Market Struggles to Make Traction

Bitcoin Today: Prices Slip as Broader Crypto Market Struggles to Make Traction

Bitcoin Today: Prices Attempt to Recover From One-Month Lows

Bitcoin Today: Prices Attempt to Recover From One-Month Lows