The IMF on Sunday suspended talks with Hungary over disagreement on 2011 budget deficit (Hungary wants more than 3.8%, IMF says 3% max). Hungary had asked for EUR 20bn from IMF, EU and World Bank in October 2008 after other sources of financing dried up. It is highly unusual for a country to let negotiations with the IMF break down in such a manner.
The recent strength in the Euro (from $1.18 to $1.29) is mostly due to covering of short positions (see chart) and could reverse at any time.