I'm on EUR & GBP.....

Euro dollar moved up to a higher range, enjoying efforts by the Swiss authorities to weaken the franc against the euro. before things warm up with the Merkel-Sarkozy summit tomorrow.

I turn from neutral to bearish on EUR/USD.

The bond buying scheme presented by Trichet managed to stabilize the Italian and Spanish fronts. It was so successful, that it might turn into a QE program, that will eventually hurt the euro. With flat French growth, easing inflation and some stability in the US, the pair has room for falls.

I am bearish on GBP/USD.

After Britain managed to distance itself from the debt club, it still faces deep economic problem and probably lower inflation to weaken the case for a rate hike. With some signs of improvement in the US, there is room for GBP/USD weakness.