EUR

what MNI said about my take:

Ashraf Laidi of Intermarket Strategy
addresses why the euro, at current levels near $1.2999, is not back to
the low levels near $1.1875/80, seen in the summer of 2010, even though
eurozone problems are greater now than then. The differences - in 2010,
bond prices were factoring in Fed tightening, which underpinned the
dollar. The Fed raised the discount rate (to 0.75) in February 2010.
Also US data and the economy was bolstered by temporary housing
programs. And "the lack of QE2 probability in the US was behind USD
strength and a 17% slump in stocks from April to June 2010," Laidi
reminds. He looks for the euro to slip further (on global deleveraging,
fading of BRICs "engine," on top of existing eurozone debt concerns).
"Our EURUSD forecast for $1.25 in Q1 and $1.18 in early Q2 remains
intact, accompanied by further (but choppy) declines in equities," Laidi
says.


Ashraf