EUR/USD (1.5355) – Weekly Forecast

Weekly forecast levels: 1.5190/1.5605

Trend for the week – Neutral/Upward

Market Focus: Trade Balance, Retail Sales, CPI, Core CPI, Fed new steps against credit crisis, Fed interest rates.

Weekly Strategy: The last fundamental economic data show that Fed will cut the key benchmark interest rates with 75 bps to 2.25%. At the same time when all news from United States continue to send the dollar to new records day after day the Fed announced new measures to prevent the credit crisis. If these measures are not adequate the dollar losing will continue. All factors show that the starting on Friday temporary dollar recovery is very tiny and reverse in new records above 1.55 and 1.56 is expecting very shortly.