European & US sessions forecast levels: 1.3025/1.3340
Trend Sessions: European: Neutral/Upward
Market Focus: 8:30 AM CPI, Core CPI, 9:15 AM Capacity Utilization, Industrial Production, 9:55 AM Michigan Sentiment-Prel, 5:00 AM EU Trade Balance.
Daily Strategy: The European Central Bank cut the key interest rates with 50 bps to 2.00%. The ECB president Trichet said that would not cut the interest rates again soon. The inflation is still on focus and will keep the euro zone interest rates higher. In the first moment the traders sell euros after the Trichet press conference but during the Asian session follow profit taken. The euro recovery will continue for a short time, as is possible recovery of the dollar at the end of this week.