Yields are the main factor driving flows. The key factor supporting the dollar is expectation of higher rates and acceleration of inflation expectations.

The results confirm the view that the euro zone export/investment-led recovery is graduating to a more self-sustainable level, supporting expectations of rising interest rates in 2006.

The ECB has to be cautious since risks probably outweigh benefits. So I expect hawkish talk but cautious action.

Friday's trade data allowed the market to focus on the cyclical performance of the U.S. economy. It doesn't appear that the yield difference will shift in favor of the euro any time soon.

Friday's trade data allowed the market to focus on the cyclical performance of the U.S. economy, ... It doesn't appear that the yield difference will shift in favor of the euro any time soon.

The ECB has to be cautious since risks probably outweigh benefits. So I expect hawkish talk but cautious action,