EURUSD

EURUSD BEARISH Break below 1.38700 has exposed support at 1.38384, the key low from July 12 ahead of 1.3752. Initial resistance is at 1.39771.

EUR: Targets: EURUSD 1m 1.40, 3m 1.35

At yesterday's ECB press conference, President Trichet stressed intensified downside risks to growth while the risk to inflation is no longer regarded to be on the upside. GDP forecasts were revised down significantly. Inflation is projected to fall below 2% in 2012. Hence Trichet dropped his tightening bias. A further deterioration in growth momentum may trigger a further change in stance.
French Finance Minister Baroin announced that no final communiqu? would be issued after Friday's G7 meeting, which is due to continue into the weekend.
Dow Jones Newswires citing an unnamed source, said there is "serious concern" at the IMF about Greece's ability to implement structural reforms.
The Dutch Finance Minister said that if the IMF, ECB, or the EU finds Greece has not complied with the agreed budget reform path, Netherlands will not give further aid.