Reuters quotes “sources” as saying the IMF is likely to tell Eurogroup finance ministers next week that the euro is overvalued versus the dollar (Strauss-Kahn said that explicitly in Le Figaro yesterday). They will also tell finance ministers that if exit strategy is delayed too long the euro could rise more. Exit strategies should start in 2011, they say, though recovery is not assured.

EUR/USD is in consolidation mode with U Michigan consumer sentiment and new home sales later.