The release of the European Central Bank ( ECB ) released its February monthly bulletin in which it uses language that in the past has signalled a interest rate rise in the pipeline. The quote is: 'The governing council will exercise vigilance so as to ensure the solid anchoring of long-term inflation expectations at levels in line with price stability.’

There was nothing in the bulletin to get the forex markets or currency traders excited here, but comments from European Central Bank (ECB ) Chief Economist Otmar Issing were interesting. Herr Issing, a Bundesbank stalwart, conducted an interview with the Frankfurter Allgemeine Zeitung newspaper, Issing was asked whether the ECB’s key
interest rates would be raised in the near future after it increased them by 25 basis points in December 2005, the first rate hike in five years.

'To this (issue), ECB President Jean-Claude Trichet has said several times that: firstly, the ECB Governing Council harbours no notion of a premeditated sequence of steps ofs of interest rate increases. Secondly, we examinethe condition and if we see higher risks for price stability, then we will act.’ Issing told the newspaper that risks for economic growth in the euro-zone lie mainly in the international environment. 'A particular risk there is that the oil price will continue to remain high or even continue to increase further.’
Watch out for our next Forex Trading Tip, which will be on Central Bank confusion tactics.

Neither the comments by Issing or the ECB bulletin managed to stir traders from their breakfasts. The Euro remains range bound, trading at 1.1970.