The EUR/USD pair moved higher in yesterday's trading. There weren't any significant data, so the reason must be found elsewhere. We can only conclude that the Iraq issue is effectively hurting dollar sentiment at this stage. The US military claim the situation is under control, but the amount of attacks and US death toll in very different locations show a widespread level of unrest not seen since the official end of the war... This morning, the pair even set new recovery highs at the 1.2190 area. The USD still looks under downward pressure in a re-installed sideways range between the 1.20 and 1.2460 areas.
ČSOB - Investment Research