Jeremy Stretch Euro Quotations

I think euro bulls were disappointed by the ECB,

We probably are at the bottom of the economic cycle and that would suggest that there is some modest light at the end of the tunnel particularly in terms of an improving export backdrop, ... The euro is at a much more competitive level than we were seeing at the tail end of last year.

There's scope for the euro on the downside especially if the riots continue. It's another reason to sell the euro.

The narrowing in the spread between two-year bunds and Treasuries is very important, as the interest-rate spread argument is one of the main arguments driving the dollar. I don't think we will have enough momentum to power aggressively against the euro by the end of the year.

Interest rates, I think, will start to fall in the U.S. in 1999, suggesting that the Euro will outperform the dollar in the early stages.

The euro is trying to grind higher but it's still in a range. The tone of a post-decision press conference will be important.