EUR/USD (1.3441)

European & US sessions forecast levels: 1.3260/1.3535

Trend Sessions: European: Neutral/Downward

US: Neutral/Upward

Market Focus: 8:30 AM Initial Claims, 10:00 AM Leading Indicators, Philadelphia Fed, 5:00 AM EU Industrial production.

Daily Strategy: The dollar loses about 500 pips against the euro following the speculations for the end of the recession in United States this year. The investors turn to the risky assets and forget about the dollar as stability currency. The dollar fell with about 500 pips after the Fed decision to buying treasuries purchases of mortgage debt and all in a size of $1.15 trillions. The dollar fell against the major currencies due too the worries about so many investments could push the inflation. On our web site about 60 percent of the traders predict that after the end of recession will follow inflation. The inflation will hurt the dollar very strong and may break the record levels of 1.60 in a short time.