European & US sessions forecast levels: 1.5395/1.5570
Trend Sessions: European: Neutral/Upward
Market Focus: 8:30 AM Initial Claims, NY Empire State Index, 9:00 AM Net Foreign Purchase, 9:15 AM Capacity Utilization, Industrial Production, 10:00 AM Philadelphia Fed, 2:00 AM German CPI, German GDP, 2:45 AM French GDP, 4:00 AM ECB Monthly Bulletin, 5:00 AM EU CPI, Core CPI, EU GDP, 7:40 AM ECB President Trichet Speaks.
Daily Strategy: The dollar remains steady on positive US inflation report. The inflation is low in spite the record oil prices. The low inflation gives free room to Fed to act with the interest rates if necessary. The dollar will continue to trade into neutral direction and in consolidation process. There are important economic events today that will move the market. Take your attention to US Net Foreign Purchase and Industrial Production. The key support for the dollar formed at 1.5395. The break below will follow levels of 1.52 in near-term.