The euro returned to its previous trends and strengthened against the dollar. In Europe the rate EUR/USD began at 1.1587 yesterday and the greenback strengthened to 1.1534 in the morning. Later the trend reversed, investors took profits. However, the main reason caused ECB president W.Duisenberg, who declared that the dollar depreciation was inevitable and that ECB would not intervene. The rate EUR/USD then closed at 1.1714. A similar trading session was in the U.S.; it opened at 1.1587 and closed at 1.1716. No one expected such strong dollar depreciation especially when no macro data were released. The rate EUR/USD opened at 1.1712 this morning and should stay between 1.1670 and 1.1770.
CSOB, Investment Research