The EUR/USD rate brought an extraordinary volatility yesterday. Its new maximum value was a signal for selling the euro and taking profit. The euro even fell below 1.27 levels. The market might be afraid of an ECB action, but the bank kept wait and see politics. This morning the EUR/USD rate was at about 1.27, today's data does not represent any danger for the currency pair development. However, after yesterday's correction we expect an other euro strengthening and new maximums during next weeks. Today the rate EUR/USD should fluctuate between 1.2680 and 1.2780.
CSOB Investment Research