This morning the euro moved from 1.270 to 1.278 due to declaration of European representatives that no intervention was mentioned at G7 meeting. Today the markets may be careful in expectation of Mr. Greenspan Wednesday's report before the Financial Committee in Washington. It is obvious that only BoJ interventions could slow down the dollar weakening. However, we still believe that the best way to stop euro strengthening is a cut by ECB. The rate EUR/USD moves at about 1.2774 this morning and should stay between 1.271 and 1.281 EUR/USD
CSOB Investment Research.