EUR/USD (1.4805)

European & US sessions forecast levels: 1.4715/1.4865

Trend Sessions: European – Neutral/Upward

US – Neutral

Market Focus: 8:30 AM Trade Balance, 2:00 PM Treasury Budget, 2:00 AM German WPI.

Daily Strategy: Ben Bernanke signal that Fed will cut the US interest rates soon while at the same time Trichet will act with to raise the Euro Zone interest rates according to the inflation. The both presidents just like the expectations do not support the dollar and the trading is already close to the record low levels against the euro. The speculation that US economy will fall into recession this year and the expecting cut of US interest rates would not help to the dollar. Many traders already believe that the dollar will test the levels above 1.50 in near term.