Forex Flash: Euro-phoria might look stretched soon - UBS (Córdoba) - EUR/USD is rising towards the high end of the 1.30-1.35 short-term range. "A break higher seems plausible currently", UBS team says. "Markets were quite pleased with a strong Ifo index and also with the announced LTRO repayments to the ECB. The 137 bn EUR were slightly above market expectations and led to a rally of Italian bond yields".

Nevertheless, according to UBS, the figure was not yet large enough to signal that the financial crisis is over. "We therefore remain cautious when EURUSD rallies above 1.35".