Eur/usd - 1.2794 ... Despite y'day's rally to 1.2856 on active short-covering n cross buying in euro due to risk appetites (Dow Jones index closed up 254 points y'day), the single currency moved sideways in Asia as investors are waiting for the ECB rate decision which is widely expected to keep interest unchanged at a record low of 1%, however, economists expected ECB to extend its liquidity safety-net, delaying its exit from crisis support as policymakers confront a lopsided euro zone recovery n vulnerable banks in perimeter countries. Offers by speculators n macro funds are tipped at 1.2810/15 n further out at 1.2840/45 on concerns over eurozone, Greece, Ireland n on expectations that ECB will continue to extend liquidity on growth concerns together with speculation that Buba's Axel Weber may reiterate recent 'dovish' comments again after the rate announcement. On the downside, bids are located at 1.2745/50 n 1.2700/05 with mixture of bids n stops seen below 1.2700.
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