European & US sessions forecast levels: 1.3055/1.3320
Trend Sessions: European: Neutral
Market Focus: 2:00 PM Treasury Budget, 2:45 AM France CPI, HICP, 3:45 AM France Industrial Production.
Daily Strategy: The dollar continues slowly recovery against the euro following our forecasts by the prior week. The dollar reached 1-month high against the euro. The recovery is based on Jean-Claude Trichet president of European Central Bank who send signals that the key interest rates may down to 1.25%. Most of the investors expect ECB to be more aggressive by the last meeting with 50 bps but ECB cut the interest rates with 25 bps only. May be on the next meeting ECB will cut the interest rates with 50 bps.