"Admittedly the EUR-USD rally since 5th September was very impressive: the pair was able to rise by more than 6 US cents over 8 trading days. This move then ran out of steam on Monday in the area just below 1.32", says Lutz Karpowitz, analyst at Commerzbank. "This was probably not only due to profit taking as there are too many uncertainties for the markets to still be betting on risk-on sentiment".
Too many questions in the euro zone remain unanswered, "in particular the conditions imposed on a country which applies for an ECCL programme with the EFSF so that the ECB can then purchase its bonds", they say. "In addition there are also negative factors in Asia – economic as well as political. Therefore the upward potential of the high-risk currencies remains limited for the time being".