The euro edged up slightly on Wednesday. The common currency temporarily rose to $1.0576 from $1.0503 late last night. Investors focused on price developments in the USA. Consumer prices there rose by 8.3 percent in April compared to the same month last year, after an increase of 8.5 percent in March. On average, analysts had expected a decline to 8.1 percent. “The data shows inflation is far from abating,” said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. The US Federal Reserve is already raising interest rates to counteract inflation, which was last at a 40-year high.
In Europe, the President of the ECB, Christine Lagarde, held out the prospect of an interest rate hike in the summer. It could take place a few weeks after the end of the bond purchases, the head of the European Central Bank said in Ljubljana on Wednesday. The end of the purchases should take place at the beginning of the third quarter. Most recently, several ECB representatives had announced a rate hike for July. On Wednesday, ECB Director Frank Elderson spoke of the possibility that key interest rates could rise in July. Oil prices rose on the back of a possible supply shortage as a result of the planned Russian oil embargo. Brent crude rose 4.4 percent to $106.95 a barrel. Hungary had spoken out against the oil embargo against Russia proposed by the EU Commission. “But even if some of the measures are eased, it’s likely that EU sanctions will still significantly reduce EU imports of Russian oil and refined products,” said Vivek Dhar, an analyst at the Commonwealth Bank. Concerns about the economy had previously pushed prices down significantly.