Forex Flash: EUR/USD shows no intention to move in either direction - UBS

FXstreet.com (Córdoba) - For more than a week EURUSD is now flirting around 1.3000 and shows no intention to move in either direction, up or down, according to the UBS analyst team. "On Thursday the fall of EURGBP was also felt in EURUSD, bringing the rate down from 1.3080 to 1.3000", they comment. "Before that, it was driven higher by concerns about the US economic recovery".

"We still think that the upcoming ECB rate cut and the recession in Europe will drive the euro down. This may happen as soon as the foreign demand for Spanish and Italian bonds ebbs down", UBS concludes.