European Capital immediately understood the investment thesis and acted quickly to complete the transaction. We are impressed with their flexibility and hard work.

That argues for sustained yuan appreciation in the coming months, irrespective of dollar moves.

There should be good support around 120.10. That would be on intraday, a good area to buy at looking for a 20 to 30 tick rally this afternoon to get us back up nearer to unchanged levels.

Having said this, the rise in U.S. rates overnight does suggest there is scope for another test below $1.20 in the euro today, but we would look to square shorts at $1.1950.

I would be concerned that we might be getting ahead of ourselves in thinking this M&A activity is going to persist. If the economic conditions are not right, then it won't.

The market is expecting a fairly upbeat assessment by Greenspan. This is one reason why the euro is not trading significantly higher against the dollar but is in a range.

We periodically review our fees. The $19 fee that did not change is the lowest in the industry, and the other fees are certainly competitive.

The question is whether the new forecast sticks to the previous projection of robust growth and at/above-target inflation or whether some of the downside risks get incorporated into the central projection.