European & US sessions forecast levels: 1.2875/1.3440
Trend Sessions: European: Neutral/Downward
Market Focus: 8:30 AM CPI, Core CPI, Retail Sales, Retail Sales ex-auto, 9:15 AM Industrial Production, Capacity Utilization, 9:55 AM Michigan Sentiment, 10:00 AM Business Inventories.
Daily Strategy: For the last two days the dollar loses more than 400 pips against the euro. Worse than expected U.S. Initial Claims send signal to the investors for slowly recovery of the jobs market. The European Central Bank President Trichet said that the inflation pressure is restricted but he also hint that is possible later this year to rise the interest rates to keep the price stability. The U.S. Trade Balance report was better than expected and was the one of the positive news for the world largest economy. There are many key events today that will influence over the forex markets. FS Team expects the dollar to continue the losing serial but first we see technical correction downward.