[effexx]

EURO set to
dip further

The Euro was mostly flat in static Asian trading after tumbling over night to its lowest level in
nearly a year. EURO/USD at present trading at 1.3038. Traders see a further slide in the single
currency when no silver bullet is in sight for the Euro zone debt woes.

It seems to be only a question of time before the EURO falls through the 1.3000 mark and will
test the technical support level on 1.2860 seen in January 20011.

The negative EURO sentiment is likely to persist unless Germany and the European Central
Bank (ECB) step up their efforts to put an end to Eurozone crisis. Such changes are, however,
unlikely to occur within soon.

Under the present circumstances the EURO is expected to come under increased
pressure also from the yen. In October the Euro fell to a ten years low against the Yen at 100,77.

Japanese analysts predict that the EURO may fall as deep as to Yen 96. They predict Euro/USD
down to I,20; testing earlier low levels seen after the financial crisis in 2008.

Traders will today keep a sharp eye on the Italian bond auction and EU production data numbers
for October which shall be published as well.

Meanwhile stock markets are extremely volatile. Dow Jones went yesterday from plus 100 to minus 100
during the same session. Financials are under strong pressure.

MF Global