The other view that we favour more would be that it is more structural problem, so it would need labour market policy in order to counter the unemployment rate. In our opinion more quantitative easing is a risk for the US Dollar, as it may create inflationary pressure. However, Bernanke made it pretty clear that the option of more quantitative easing is still on the table. This keeps the US Dollar from appreciating quite notably, because QE3 would have a negative effect on the US dollar. Market participants are still waiting for more signals from the Fed as well as from the data side, which would point in either direction. What we are currently having is very technically driven trade, because there are no very strong impulses at the moment neither for the Euro nor for the US Dollar and so we are very much in a range driven trade or in a technically range trade. Currently we are more in a sideways movement until we get the next big scene. For the US this would be of course QE3 and for the Euro side it may eventually be a reescalation of the Eurozone debt crisis.
For EUR/USD our forecast for the Q2 is 1.32. The main topics that will be monitored are the risk of QE3 on the Dollar side and deterioration of the Eurozone debt crisis situation for the Euro.