Yesterday the euro started up in the afternoon and reached its maximum at 1.2636 EUR/USD. It was supported by ECB decision to keep rates unchanged and by non-positive data from American labour market. However, it did not last long, optimistic speech of Fed member Mr. Bernanke helped the greenback and the rate EUR/USD returned to morning values. Today's markets expect American payrolls and G7 meeting, but both could hardly change FX rates. Nevertheless Mr. Bernanke's optimism has opened positive expectations on the market and cleared little space for dollar strengthening. The rate EUR/USD moved at about 1.2555 this morning and should stay between 1.249 and 1.259.
CSOB - Investment Research