EUR/USD has broken to new highs for the year pushing close to what could be called the 'ECB ceiling' in the 1.40 area, notes Goldman Sachs. "At that level, roughly, we and many market participants would expect the ECB to respond to the threat of tightening financial conditions. Such a response would likely include more explicit verbal intervention or even a rate cut," GS adds "The latter is currently not part our central scenario because financial conditions have not tightened much in recent months despite the EUR strength...Still, if verbal intervention by the ECB proves insufficient and EUR/$ continues to ... (full story)