EUR/USD - the highest level in a month

6th June - The EUR/USD is trading at highest levels in a month, boosted by news coming from Greece and Portugal. Markets are anticipating ECB's move on Thursday, which may result in higher interest rates. The European Union is getting out of the crisis, Christian Noyer declared while pointing out that ''there are increasing signs that the economic recovery is on track''. The monetary policy in the Euro Zone is still acommmodative, though the ECB is taking a stronger grimp on the interest rates than the Federal Reserve. If the ECB officials share the opinion that the risk of double dip recession has faded, we can expect a further increase in the interest rate on Thursday. However, the situation in the peripheral economies may impose  the central bank to wait for the next Governing Council Meeting. All in all, one should not expect a very swift move in the interest rates in the Euro Zone for the moment.

In the very short term (1day) one should expect a consolidation of the trend for the EUR/USD.