The euro vs. Dollar movement had two different periods yesterday. The euro started strengthening and came near to 1.28 (1.2789) limits. Later on, it turned back to 1.27. This morning the euro goes on weakening. FX markets are nervous expecting semiannual A.Greenspan testimony before the House Financial Services Committee in Washington. His speech very likely will stress the development of American economy and improvements on labor markets. However, we do not see any support for the greenback. Therefore the pressure against the euro might change into a tendency to the dollar depreciation. We expect today's range at 1.264 - 1.277. The rate EUR/USD is at about 1.2685 this morning.
CSOB Investment Research