FXstreet.com (Barcelona) - EUR/USD has been rallying continuously from Mar 3 low at 1.2456 all the way to test 1.3070 on Mar 16, fuelled by increased risk appetite on a general feeling that the worst of the global recession has been left behind.

Nevertheless, UBS Bank warns about the possibility of a pullback as renewed uncertainty could play on USD side: Supported by positive risk sentiment, the pledge of G20 finance minster to double IMF resources and the worries from Chinese PM Wen, EUR/USD temporarily rose to above 1.3070. We doubt that we are out of the woods yet, and renewed market uncertainty could again support USD in the short term.