European & US sessions forecast levels: 1.2875/1.3440
Trend Sessions: European: Neutral
Market Focus: 8:30 AM Initial Claims, Continuing Claims, PPI, Core PPI, Trade Balance.
Daily Strategy: The dollar remains weak against the euro after the gains in the first days of 2011. The Bank of Japan decision to buy European bonds supports the European Single Currency. The today's forecast is to see temporary recovery of the dollar. Later during the day FS Team expects the trading euro/dollar to back at the levels above 1.3130. It is also expecting worse data for U.S. Initial Claims and Trade Balance today.