The study of KBC markets Tuesday, the Euro extended its ascent against the dollar. The tendency was already in place from the early past week and in the absence of the dominant economic data the movement was extended. ECB (Noyer) still that was something optimistic in the European economy that entered 2008 could slightly have been support Euro and this one also was the case for the positive feeling of the market that reigned in the bags, at least on the early hours of negotiating. Nevertheless, in the USA to negotiate the Euro (and the action) lost clearly impetus more ahead and EUR/USD closed the day in 1.4725, still a decent increase compared in the closing 1,4657 Mondays.

Today, the calendar warms

In a perspective of more long term, we clung to our opinion that one it is too early to give return to the positive of the dollar while the visibility in the economy of the USA continues being nonexisting. Nevertheless, in a daily perspective the EUR/USD bounce could change of position in a gear lower today.

Watching graphs, EUR/USD fallen shrewdly for two weeks, but returned to the center of the range that negotiates 1.4310/1.4968. In a perspective of more long term, the EUR/USD picture continues being constructive Euro while the point under medium term in the graspings of 1,43 areas whereas the low correction in 1.4440 is short term gives the intermediate aid. We maintain our purchase EUR/USD in immersions approach for the return action arrives more in range, although a test of the cover of range (1.4968) will be difficult, also. Ace EUR/USD already trades stupefies the middle of the established range, there is not hurry AT all to add to EUR/USD longs AT current levels.

On Tuesday, EUR/GBP you extend the up-move that started and the end of last week ace sterling remained in the defensive to after the turmoil with respect to the nationalisation of Northern Rock. EUR/GBP Seth an intraday high in the 0,7570 area around noon. Later in the session some consolidation kicked in. To speech of BOE's Barker (to rather dovish) had not impact on sterling TRADING. EUR/GBP closed the session AT 0,7557 compared to 0,7506 close on Monday. Overnight, to pair lost some ground on an overall to softer Euro.

Today, the UK to calendar contains the Public sector borrowing dates, the M4 money supply dates and industrial the CBI trends for survey February. To latter probably there are the most market moving potential.

Looking AT the graphs, the previous downward correction in EUR/GBP halted ahead of the key 0,7389 support. An attempt to break the top of the sideways range failed early February, but succeeded to earlier this week. Ace to result, the picture is again upwardly oriented in this to pair. To slowing in the overall Euro momentum shortterm might also leave its you draw up on EUR/GBP TRADING, but we continues to see this ace to buy-on-dips environment with the 0,7614 range top the first next target. Global We don't see any reason to turn sterling positive in an environment of ongoing high market uncertainty.