EUR/USD (1.5725)

European & US sessions forecast levels: 1.5630/1.5810

Trend Sessions: European: Neutral

US: Neutral/Upward

Market Focus: 8:30 AM Personal Income, Personal Spending, PCE Core Inflation, 4:00 AM EU Current Account, 5:00 AM EU Consumer Confidence.

Daily Strategy: The dollar continues to lose against the euro after serial of weak data. The latest raise of the oil will push the inflation worldwide that will cause stagflation in USA. Also the Fed will raise the interest rates when the economy is poor and inflation jump. For today is possible temporary recovery of the dollar based on profit taken. The problems for the US economy will remain at least till the end of 2008. We do not expect to see strong dollar recovery this year. The trading strategy today is to trade within the trading range.