The Euro turned around after a start at USD 1.27 initiated by the last EU summit, now operating below 400 points, its lowest level in two years, under USD 1.23.

The decline of the Euro was first accelerated in connection with the monetary policy meeting of the ECB. The institution has lowered as expected its key rate to 0.75%, a historic record. Moreover, the ECB appears unwilling to make a third long-term refinancing operations (LTRO) or new purchases of government bonds on the secondary market. Meanwhile, Spain and Italy still borrow at rates sharply higher.

Far from reassuring the markets, China confirmed the concerns in relation to its economy by lowering also, for the second time in a month, its benchmark interest rate, hoping to counter the slowdown in growth.

Finally, the publication of the monthly U.S. employment does not encourage risk appetite while hiring, insufficient to allow an unemployment rate exceeding 8% to relax, emerged slightly below economists' expectations.

Graphically, we welcome for staying away from parity in recent sessions, while the breakdown of annual lows surprised most experts. After declining so fast and with regard to a market currently largely short, we expect a technical rebound to USD 1.2477, which would allow us to take position in the direction of the trend to target a return to the USD 1.2265 short term support and at USD 1.1921 by extension.