Tuesday, October 12, 2010

EUR: the momentum of the movement for 4 weeks, may serve to undermine the euro

The single currency falls to the level of 1.40 against the background correction tone against the dollar in the markets last night. A key impetus of the week will be the protocol of the Fed meeting, which will be published on Tuesday. There is no doubt that the markets are vulnerable to the protocol of the meeting, who can refute the view that further quantitative easing before the end of the year. The major factors that have raised the euro up most of the past week remain in force, namely, that different economic path (ECB still inclined to reject incentives) and the diversification of reserves, but the momentum of the movement for the past four weeks, may serve to undermine the euro in the short term.

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