The euro drop in Europe was triggered by Wim Duisenberg

On Monday the euro slipped from 1.1807 to 1.1695 in Europe a recovered to 1.1715 in the U.S. Market holidays in Tokyo and New York meant low trading volumes. The euro drop in Europe was triggered by Wim Duisenberg who explained G7 statement about a greater flexibility in exchange rates was referenced to Asian countries and not to euro-dollar. The greenback was also supported by increase of U.S. GDP estimates by Goldman Sachs. They suppose the GDP could increase by 6.5% in 3Q2003. This morning the EUR/USD rate opened at 1.1709 and should move between 1.1670 and 1.1770. The euro might be supported by increase of German ZEW sentiment index.

CSOB, Investment Research