EUR/USD (1.3358)

European & US sessions forecast levels: 1.3190/1.3435

Trend Sessions: European: Neutral/Upward

US: Neutral/Upward

Market Focus: 10:00 AM ISM Services, 5:00 AM EU PPI.

Daily Strategy: Although the speculations that European Central Bank will cut the key interest rates to a record low level to counter a deepening recession the euro gain against the dollar. After the close of New York the dollar fall against the euro to 1.3436. The attacks against the dollar will continue in spite the expecting Euro Zone interest rates cut. It is expecting Trichet to cut the key interest rates with 25 bps to 50 bps. The European governments downgrade the growth forecasts. The latest forecast show the euro-area economy would shrink 4 percent this year that is twice deeper than the prior forecast.