It was a reaction to Mr. Trichet's commentary that strong
single currency hurt economic development. Markets expect ECB meeting today
and the following press conference. The EUR/USD rate may point at both
directions either to 1.25 or to 1.28 depending on the ECB decision. Any
action, i.e. intervention, cuts etc., will help the greenback to strengthen.
The rate EUR/USD was at 1.2605 this morning and should move between 1.2550
and 1.2650.
CSOB, Investment Research