European & US sessions forecast levels: 1.2475/1.2755
Trend Sessions: European: Neutral/Downward
Market Focus: 5:00 AM ZEW Current Conditions, ZEW Economic Sentiment, EU ZEW Economic Sentiment, EU Trade Balance, 9:00 AM US Treasury International Capital System (TICS).
Daily Strategy: The dollar successfully breaks below the key support level of 1.2705. The reason for the fall of the euro is the forecast for widely recession in whole Eastern Europe that will cause new problems for whole Europe. Most of the banks in whole Eastern Europe are part of Western banks, as any problem in Eastern Europe will faster spread in whole Europe. The latest predictions show that the recession will be deepest in Eastern Europe where the financial sector is unstable and will cause pressure to the parent banks. Some of the top banks in the Eastern Europe like Raiffaisen Bank, EuroBank, Unicredit Bank and others already signal for needed of fresh capitals as they are stopped grant credits and raise the interest rates to levels close to 10%. The dollar will continue gain today as the trading strategy is opening short positions today.