The London session was pretty uneventful from a price action standpoint as the market continued to position ahead of the ECB rate decision and press conference. The ECB cut rates by the expected -50 bps to 2.00% and EUR was lower in the aftermath. The markets now await the 830am ET press conference to shed more light on the future path of rate decisions and outlook for the eurozone economy. The only other noteworthy piece of economic news was that December eurozone consumer prices came in as anticipated at a 1.6% annual rate, down from 2.1% in November and 3.2% in October and well below the ECB's 2.0% target run-rate.

EUR/USD was initially pretty well unchanged in the London session in the 1.3160/70 zone. Even with the as expected rate cut, however, the pair got hit just minutes later. The break below 1.3130 hourly range support saw losses accelerate into yesterday's 1.3090 lows. This looks like the next critical base and we would expect a try for 1.3000 initially if through here. With the ECB press conference and some top tier US economic data in the form of initial jobless claims and regional manufacturing indices due up, the price action in EUR/USD is likely to remain bustling throughout the NY session.

Upcoming Economic Data Releases (NY Session) prev est

* 1/15 8:30ET EC Trichet Speaks at ECB Monthly News Conference

* 1/15 8:30ET CA NOV New Motor Vehicle Sales MoM -0.90% -7.00%

* 1/15 8:30ET US DEC Producer Price Index (YoY) 0.40% -1.10%

* 1/15 8:30ET US DEC PPI Ex Food & Energy (YoY) 4.20% 4.10%

* 1/15 8:30ET US Initial Jobless Claims 467K 503K

* 1/15 8:30ET US Continuing Claims 4611K 4620K

* 1/15 8:30ET US JAN Empire Manufacturing -25.76 -25

* 1/15 10:00ET US JAN Philadelphia Fed. -32.9 -35

* 1/15 10:30ET EC ECB's Stark Speaking in Frankfurt

* 1/15 13:40ET US Fed's Lockhart Speaks on U.S. Economic Outlook

* 1/15 13:55ET US Fed's Evans Speaks to Bankers in Madison, Wisconsin

* 1/15 15:45ET US Fed's Yellen Speaks on U.S. Economic Outlook