We had a bit of fear in the market amongst EUR longs last week when the WestLB news hit the wires. There is no smoke without fire and there have been a lot of rumours about the state of the European banking system over the last 6 months. I am very wary of being long EUR against anything at these lofty levels. Much has been said on these pages regarding a big double-no-touch in EUR/USD with parameters at 1.48/1.51 and I will leave this market well alone with prices currently in the middle of this range. EUR/JPY and EUR/GBP are better strategic ‘sells’ in my opinion.