EUR/USD (1.5601)

European & US sessions forecast levels: 1.5540/1.5715

Trend Sessions: European: Neutral

US: Neutral/Upward

Market Focus: 8:30 AM Trade Balance, 2:00 AM German WPI, 2:45 AM French Industrial Production, 4:00 AM Italian Industrial Production.

Daily Strategy: Although the Bush speaks about the desire for strong dollar the dollar is not strong and will continue to fall against the major currencies. It seems that the US economy is in recession. The US economy is at worse situation from tens of years. Mr. Bush is one of the main reasons for the recession and record low dollar. The latest speculations show that Fed will hike the interest rates at the end of 2008. Having a mind the high inflation such interest rates hike is necessary.