EUR/USD (1.4823)

European & US sessions forecast levels: 1.4745/1.4860

Trend Sessions: European – Neutral/Downward

US – Neutral

Market Focus: 10:00 AM Existing Home Sales, 4:00 AM Italian Retail Sales, 1:50 PM ECB President Trichet Speaks.

Daily Strategy: The fears about the high Euro Zone inflation stop the rumors and speculations about eventually interest rates cut by ECB. With so high inflation the chances for cut of the interest rates in the Euro Zone are minimal. The new jump of the oil prices will hurt serious the world economy and will pump the inflation. For today we expect temporary recovery of the dollar during the European session. If the dollar break above 1.4860 will follow levels of 1.4920/25.