The Euro will continue to be shaken by the sharp losses last week and this will inevitably deter Euro buying with near-term resistance around 1.22. The US dollar will, however, now need to see underlying buying interest to rally further and this will be a difficult proposition with medium-term depreciation still likely. Overall long dollar positions offer very little value stronger than 1.2080 against the Euro. The US currency will still find it difficult to secure strong underlying buying interest, especially given the dollar's underlying vulnerabilities. The forthcoming US data will be important given Greenspan's ... (full story)