MAD: Watching The Euro

Having topped out at MAD10.90/EUR at the end of Q210, the dirham has recently broken through support at MAD11.10/EUR, and we stress that the next level of support does not come in until MAD11.32/EUR. Given the close relation between the dirham and the euro (the dirham is heavily pegged to a euro-dominated basket), we have revised our short-term view on the currency in line with the recent bounce in the latter, and we expect it to trade around the MAD11.20/EUR over the coming weeks. Nevertheless, we can't dismiss the possibility of further weakening against the European common currency, particularly given

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