"Another week's worth ofdata and the uncertainty around growth, inflation and the policyresponse to both, remains as uncertain as ever. Despite Bernanke'sspeech, we are unconvinced that the Fed can actually take any concretepolicy steps about the dollar. The main purpose of the exercise appearsto be one to convince the 'peggers,' particularly the Middle East, tostick with the program and keep recycling their petrodollars into the USfinancial system. We suspect that the current round of macro data, acertain level of softness in commodity prices and a global economy thatdoes not yet appear to be in trouble, will keep the dollar well behavedand more likely trading closer to the $1.54/Euro mark than the$1.60/Euro mark."