Yesterday the FX markets recognized that ECB could not be persuaded to cut rates and that even Fed might hike sooner. Therefore the dollar after morning attempts for correction went on strengthening and reached the 1.236 levels. Later during the night Asian trading session the movement stopped, the markets wait for G7 meeting next weekend. Till this event we suppose the dollar should strengthen. The rate EUR/USD moves at about 1.2420 this morning and should stay between 1,232 and 1,242.
CSOB, Investment research