At certain stage we even witnessed a break through the resistance level of 1,5350 at the EURUSD, which could lead to a further decline. This, however, didn’t happen partly because of hawkish comments from the ECB’s President and partly because of a rise in oil prices. Since  the May 1st oil gained as much as 15% in the dollar terms sparking an unrest about prospects of the World economy and leading to a significant correction on the stock markets. Should high oil prices persist, not to mention a further rise, the prospects of a rapid recovery in the US economy would be gone and stock indices would sink further, together with the USDJPY, which so far stopped at the 102,60 support. A fall on USDJPY would to some extend support the euro and the frank.          

Przemysław Kwiecień Chief Economist