European & US sessions forecast levels: 1.4555/1.4710
Trend Sessions: European â€“ Neutral
US â€“ Neutral
Market Focus: 8:30 AM Initial Claims, 10:00 AM Pending Home Sales, 3:00 PM Consumer Credit, 2:45 AM French Trade Balance, 6:00 AM German Factory Orders, 7:45 AM EU Interest Rate Announcement, 8:30 AM ECB President Trichet Speaks.
Daily Strategy: The dollar is in consolidation in expectation for the key ECB press conference at 8:30 AM today. The forecast is that ECB will hold the interest rates unchanged but to warn for starting crisis in Europe and to start with interest rates correction into downward direction during the year. It is expecting very dynamic trading today with high volumes. It is very difficult to predict the words of Trichet but if he follows the Europe fundamental reports the words have to be negative for the euro.