European & US sessions forecast levels: 1.3250/1.3485
Trend Sessions: European: Neutral/Upward
Market Focus: 8:30 AM Non-farm Payrolls, Unemployment Rate, Average Workweek, Hourly Earnings, 10:00 AM Wholesale Inventories, 2:00 AM Germany Current Account, Trade Balance, 6:00 AM Industrial Production.
Daily Strategy: The European Central Bank cut the key interest rates with 25 bps to 1.00%. This was the minimum expectation as by this way Trichet support the strong Euro. The Euro was sharply support by the Trichet words on the press conference: €œThe latest economic data and survey suggest tentative signs of a stabilization at very low levels after a first quarter which was significantly weaker than expected.€ For today the key economic event are coming from USA. The key US Non-farm payrolls and Unemployment Rate are on focus. It is possible to expect surprises as the forecast is for new jump of Unemployment rate to 8.9% and at least 600K lose jobs. The dollar may continue suffer against the euro today.