The euro goes on strengthening against the dollar and broke the 1.27 limits
this morning. Yesterday the limit persisted supported by BoJ intervention.
However, the greenback's fall was underlined by US authorities' lack of
concern with the currency. We suppose that the euro strengthening may
continue, the change could be caused by a cut in the EMU. But we doubt that
such a scenario is acceptable for ECB in a short time horizon. The rate
EUR/USD should move between 1.2640 and 1.2740 today.
CSOB, Investment Research