EUR

It doesn't look promising for EUR bounce up. Wait for 1.200?
Good calls Ashraf!

Ok EUR drops below 1,23 selling short from strangle position. Doesn't look promising for target 1.27

Stationdealer I bet on EURUSD 1.27 this week indeed but additionally I do a strangle on EURUSD .
ECB has withdrawn liquidity already that is the only reason that EUR raises for now.

We can't. It's simple.

Mondo, I wasn't talking about China. They have already performed very through out of last year '09 and shown they can tackle inflation better than anyone. I totally standby china monetary reforms and in general trade policies.
Beijing has been pretty quiet on the declining euro, and with good reason.
Theres been some chatter in markets that central banks, including the big names in Asia, are starting to fret about the euros decline, and even offloading some holdings.
We may never know for sure. But theres certainly no great impetus for the Peoples Bank of Chinaour champion of reserve diversification in Asiato rush euros onto the market.
Not that long ago China was warning the U.S. about a deterioration in the U.S. dollar, reminding the world it had a vested interest in the dollars value via its massive holdings of U.S. government debt.
The greenbacks recovery courtesy of the euros fall has eased those concerns. China is sitting prettier on its U.S. assets.
And while theres speculation the PBOC was a buyer of euros at the peak, it doesnt naturally follow that it would be selling into the declines.
European finance ministers are sounding concerned about the euro, but the European Central Bank has been much less vocal. The PBOC would probably fall into the sanguine camp alongside the ECB.
Finance ministers are much more minute-to-minute. They have exporters on their backs and manufacturers at the front door to worry about.
Central banks tend to be less concerned about daily currency wobbles, especially when it comes to their reserve accumulation. They will go into the markets to smooth things out, but for reserve strategy they look past the short term.
China is sticking with its plan to shift some new reserves into assets aside from the dollar, and the euro would make up a fair portion of that investment basket. And as long as the PBOC remains confident the euro is not going to collapse, and given its stated aim of limiting its reliance on the dollar, it may even be tempted to pick up euros on a cheaper basis.
Chinas central view is probably that the U.S. dollar is due for a long-term structural decline. Over time, fewer trades will be done in the greenback. Its in Chinas interest to keep euros on its books, and add to them as and when it can.

Monty when good ol' Jim said 121, 120 figure Euro closed on 12327 on 16th may, and over the weekend when he made those comments euro was basically expected to open lower. so what i would take from his words is that he see's euro bottoming out at these levels. And Kiwi's and Aussie's will raise rates again into the second quarter, a good indicator for that will be a declining trade balance figures.

Cat Euro i see 127 end of this week while (dont forget options & futures expiry up soon. So the sellers sentiment would like an other go again at it in the new contracts) Medium term i see it back 133 to 135 probably around early as of august. long term back above 144. Meanwhile i still expect some side ways waves to continue.
Pound i know end of this year will be back above 160, long term higher rate argument is suggestive
as we have Olympics in 2012 so it makes sense to raise sterling value higher. Medium term i see it 15050 to 15350. short term we do not need to fear GBP as volatile pound will continue to give ample opportunities along with the side lining aussie and euro.
Aussie on the other hand is contrary to dollar, while dollar index shows signs of being range bound traded value btw 83 - 87 i would favour shorts on much of aussie rallies with short term bullish rallies may likely appear. For now I do see aussie headed towards 9030/40 pior to 4th June's NFP figures.
Aussie yen would remain preferred trade in-case RBA decides to continue raising rates for 2010.