Thursday, August 6, 2009

A strong euro may be concerned about the ECB

With the return of appetite for risk single European currency added significantly to the price against the dollar and is now located near the highs of the year above $ 1.44, while in March it could be observed near $ 1.26, and in the ranks of market participants are gradually beginning to show concern about the possible consequences of such rapid change of the euro for the fragile economies. From the ECB today, it seems, no one expects the special surprises, but UBS currency strategists note that the euro may have worried the central bank's management, and softer notes, or even a direct comment about the course of a single currency could provoke its sale. In particular, UBS notes the persistence of risk of further reducing the euro / pound. The pair managed to take bidami in stg0.8460/50 for stabilization, but attempts to restore still remain limited, and UBS advised to maintain a short position, given the risks of continuing to fall stg0.8435/30, and then to stg0.8400. Ofer noted some stg0.8485/90, as well as in the area stg0.8510/15.

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