No important events are expected today.

Last week the Euro demonstrated a rapid growth and a technical correction is overdue. However I don’t expect sharp decrease of the quotes, as the market sentiment is now against the US dollar – investors think that US FRS will bring its discount rate up to 5% next March and then will take a break or finish the cycle of monetary policy easing.

Last month there were problems with dollar liquidity in the European market because the Swiss bank Credit Suisse had asset problems and the Swiss Central Bank actively borrowed cache from the Federal Reserve through currency swaps, but now the Fed’s swap rate has shrunk to a minimum – the Credit Suisse problem is solved. It is not clear yet – for how long or not, but now it is a positive factor for the financial markets. Credit Suisse is the second bank in Switzerland and if it goes bankrupt, we will see a massive banking crisis in Europe.

Recommendations: flat 1.0250 -1.0350