The market was looking for a weak number. There was a relief rally when the number came in stronger than expected.

The mood on the dollar is currently negative, the comments are playing into it. The market is short dollar and sentiment is weakening.

Volatilities have also been bid up across the curve and with the yen having breached key technical levels, it now appears to be preparing for an attempt at testing its September 1998 low of 129.03 against the dollar,

There is a recovery story in Asia [while Kosovo] is a way to rationalize what's been happening to the euro.

You will probably start seeing some verbal intervention [by politicians]. But it is in the interest of Europe to have a weaker currency to get greater economic recovery on track.

We believe fundamentally that the market should consolidate. The strong should get stronger and the weak should go to the wall, and the market should determine that.