After several sessions of hesitation, the euro has broken its upper bound of its trading range due to favorable international macroeconomics and the prepayment of a portion of the loans (LTRO) by European banks.

The appeasement of European bond markets continues and ECB announced that 278 banks were repaid on 30 January more than one quarter of the first LTRO from December 2011 for a total of 137.2 billion euros. Evidence of an improvement in financing conditions in the eurozone.

In addition, the ZEW economic sentiment jumped to its highest level since May 2010 and PMI activity of the private sector in Euroland marked a high of 10 months. The Chinese manufacturing activity also continues to expand while the number of weekly jobless claims reached a low of 5 years in the United States.

Graphically, the Euro is now attacking a delicate area where technical barriers become greater. At first USD 1.3525, then to 1.3654, it is unlikely that the Euro can break these thresholds. European exporting companies could also begin to suffer from a strong Euro in this context of currency war. Accordingly, we recommend taking profits at current prices, the time to observe the move of the parity in the coming days.