The fall in eurozone inflation to 2.1pc in January from 2.3pc in December, and declining retail sales add to the case for a rate cut by the European Central Bank (ECB), according to Eugene Kiernan of Irish Life Investment Managers. Speaking following the publication of two reports by Eurostat this morning, he said, "This morning's figures from the Eurozone economies shows that it's continuing to edge down close to the 2pc mark, the ECB's desired target." "When we add this reducing inflation rate to the slowing money supply growth figures which we saw in January, the case is building for a rate cut; and as the sluggish retail sales data from Eurozone this morning show, the economy needs one," he added. Commenting on the euro's rise against the dollar, Kiernan said it was having a "benign" impact on inflation. ///www.fxcentre.com