On Wednesday the European currency kept its previous levels at about 1.223 during the whole trading session. Moreover, no important data were released and the EUR/USD rate remained stable, in the U.S. closed at 1.2221. Today important statistics (initial claims) are released. The market is slightly pessimistic; therefore better values may support the dollar. On the contrary American retail sales estimation seems to be much optimistic. Europe expects preliminary 2004q2 GDP in Germany and France, we do not see any positive surprise. As a whole the greenback might gain slightly today and attack the 1.22 level.
ČSOB - Investment Research