European & US sessions forecast levels: 1.3095/1.3340
Trend Sessions: European: Neutral
Market Focus: 8:30 AM PPI, Core PPI, Initial Claims, 10:00 AM Philadelphia Fed, 2:00 AM Germany CPI, HICP, 7:45 AM ECB Interest rates decision, 8:30 AM ECB Press conference.
Daily Strategy: The trading consolidates at the current levels in expectation for ECB interest rates decision. This is the most important news today that will move the market. It is expecting the European Central Bank to cut the key interest rates with 50 bps to 100 bps. May be the bank will cut the interest rates with 75 or 100 bps. The recession in the Euro Zone deeper and is necessary fast reaction. The dollar may gain today after the ECB news close to 1.30, as the break below 1.3095 is the most expecting scenario with movement down to 1.3030 or even 1.2960.