The reason was in rumours that GDP in Germany published today should be very low. In fact GDP in 1Q03 declined by 0.2% q/q and increased by 0.5% y/y. Similar data were published
for Italy, -0.1% q/q and +0.8% y/y. Such results have increased the
probability of ECB rate cut. On Wednesday the currency pair EUR/USD opened
at 1.1504, it touched the limit of 1.15335 in the morning, but closed at
1.1478. Today the rate was 1.1438 in the morning and should stay between
1.1370 and 1.1470 during the day.
(Zdeněk Šafka, ČSOB)