02.02.201204:45:00UTC+00Research: Eur/usd Attempting to Settle Above 1.31

Quotes from Societe Generale Cross Asset Research:

-The current environment reminds us of the days preceding the EU summits of end-October and early December. For now, yields of peripheral sovereigns and the EFSF are easing substantially, auctions are taking place in relatively good conditions (watch the French and Spanish issues today), the European stockmarkets are resilient and the EUR/USD is attempting to settle above 1.31.

-However, watch out for the "buy the rumour sell the news" effect: an agreement on Greek PSI that would open the door to the second tranche of EU/IMF aid would be welcome. Nevertheless, this would not solve the long-term fundamental economic and budget problems of the eurozone.