EUR/USD (1.4681) – Weekly Forecast

Weekly forecast levels: 1.4545/1.4895

Trend for the week – Neutral

Market Focus: FOMC meeting with expecting 50/75 bps new cut of interest rates. New Home Sales, Durable Orders, GDP-Adv, Consumer Confidence, Unemployment Rate, Non-farm payrolls, ISM Index.

Weekly Strategy: It seems very easy week for forecast. It is expecting heavy speculations against the dollar and the situation of US economy. It is expecting new cut of key US interest rates with 50 to 75 bps. At the same time the talks for recession are stronger than ever before. ECB would not follow the Fed with the cut of interest rates. Bush plan is very poor and probably would not help to the economy. But the trader’s interests are the wins and would not follow exactly the forecasts. All traders know well what will do the Fed again in the last week for January. But till the decision the forecast is for strong dollar. Far at the end of the week the forecast is for eventually turning up close to 1.4960/70 and test of the levels of 1.50.