The new made back the euro which assigned 1

The feeling of the market for the European banking sector asserting itself once again as a key to the euro.

Yesterday, the single currency and was penalized after information from the Wall Street Journal regarding the "stress tests" Bank, which were unveiled last July. According to the daily, some establishments have passed the examination have underestimated their exposure to risky loans of State. The new made back the euro, which assigned 1.16, to 1,2776 dollar yesterday late European session after touching 1.27 dollar at the lowest of the day. At the same time, the index CDS (credit default swap") of the banks - the financial iTraxx - tended to more than 137 points, sign of a growing concern on the sector. In June, when the euro has reached its annual low point to 1,1876 dollar, CDS index hit a high point at 200 points almost on the same day.

"It is essentially thanks to the"stress tests"that the euro has not been strongly weakened when there is a rising risk premiums for the debts of the peripheral States of the eurozone (in August, ed.)," said Barclays Capital team. "Suddenly, it is not surprising that the emergence of doubts on these tests weighs on the single currency and other risk sensitive currencies." So far, the Bank does not believe that announcements of "Wall Street journal" will have a lasting effect, to the extent that the release of the tests, figures had already welcomed by critics. The establishment of European mechanisms to prevent the failure of a State, encouraging euro-zone economic data content and the policy of the European Central Bank (ECB) under that of the Fed are elements which will limit the impact of the announcements yesterday, according to Barclays Capital. Same observation at ING, where it is estimated that the euro should again test the technical threshold of 1,2850 dollar in the next few weeks.

"The Fed easing."

Longer term, some also begin to revise their scenario on the entering to the single currency. Morgan Stanley has to raise its target for the motto of the sixteen, 1.36 dollar year, and believes that she will return soon test a 1.33 dollar level. "We believe that an easing in the Federal Reserve monetary policy, American first benefit the euro, while other currencies which can suggest - that related to raw materials or those countries with a strong domestic balance - is already very expensive.".

Morgan Stanley maintains on the other hand a bias downwards on the yen. The Japanese currency yesterday reached its highest level in 15 years against the greenback, with its currency refuge status. Thus, the dollar fell to 83,51 yen. "We believe that the Bank of the Japan will remain under pressure and that there is a risk that it is obliged to change its rules and to introduce an inflation target in its policy," said Morgan Stanley team. Conversely, Bank of America Merrill Lynch found forecasts on the yen, last week, to integrate the expectations of the market regarding purchases of us bonds by the Fed. Yesterday, the Japanese currency rose 1.83 against the euro, to 106,48.