European & US sessions forecast levels: 1.5840/1.5985
Trend Sessions: European: Neutral
Market Focus: 2:00 AM German PPI.
Daily Strategy: After the new record of the dollar the market is flat. The Euro/Dollar is in consolidation at the levels of 1.59. It is expecting neutral trading today. There are not key economic events today. It is expecting slowly recovery of the dollar today. The speculations against the US recession and the necessary by new interest rates cut for the world biggest economy continue. On the next Fed policy meeting is expecting cut between 25 and 75 bps. It is possible to see the key benchmark interest rates at 1.00% at the same level when the Fed hold the interest rates at the lowest levels few years. At the same time the high European inflation not give free room to ECB to cut the interest rates. There are speculations that ECB will raise the interest rates due to the raising inflation in the Euro Zone.