EUR/USD (1.4777) – Weekly Forecast

Weekly forecast levels: 1.4585/1.4895

Trend for the week – Neutral/Upward

Market Focus: The new terrorist warns against France and the French president Sarkozy. Fed interest rates politic, ECB interest rates politic, Retail Sales, US Inflation, Building Permits, Housing Starts and Industrial Production.

Weekly Strategy: The dollar is under pressure due too the many analyzers forecasts for moving above 1.50. The chances for such movement are high but as overall the main news that set the dollar under pressure is the expecting cut of US Interest rates with 50 bps. But the inflation report this week will send new signals to the Fed. At the same time ECB continue to burn the fire about the weak dollar with speculations for raise of the Euro Zone interest rates. In the last few days Al-Qaida warns France, Paris and the new French president to expect terrorist attacks. Such warns should send pressure over the Euro also the absent of enough dollars using for investments in Gold, Oil and rest precious materials.