European & US sessions forecast levels: 1.2795/1.3070
Trend Sessions: European: Neutral/Upward
Market Focus: 8:30 AM Initial Claims, Productivity-Prel, 10:00 AM Factory Orders, 7:45 AM ECB Interest rates decision.
Daily Strategy: The dollar remains strong against the euro ahead the key interest rates decision. The traders expect the European Central Bank to leave the interest rates unchanged or to cut maximum with 100 bps. There is not consensus what will do ECB today. There is a room for ECB to cut the interest rates, as the inflation in the Euro Zone is low and allow such interest rates correction. The key EUR/USD support is formed at 1.2795/1.2805. The break below will open the way for dollar recovery to the high of 1.2329 since October 2008. Otherwise we can see again movement above 1.32 today.