By Ilya Spivak, Currency Strategist Major Currencies vs. US Dollar (% change) 17 Jan 201 1 – 21 Jan 201 1 EURUSD : Rates in Focusas ECB’s Trichet Talks Down Outlook Last week’s impressive Euro rally clearlylooks to have owed to a parallel drop in credit-default swap (CDS)spreads from the currency bloc’s most debt-stricken peripherymember states (the so-called PIIGS, meaning Portugal, Ireland,Italy, Greece and Spain). However, barring any unforeseendevelopments, the absence of scheduled event risk on the sovereignstress front this week may bring the monetary policy outlook backinto focus. On balance, this seems to bode ill for the singlecurrency after
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