EUR/USD (1.4847)

European & US sessions forecast levels: 1.4775/1.4950

Trend Sessions: European – Neutral

US – Neutral/Upward

Market Focus: 8:30 AM CPI, Core CPI, 9:00 AM Net Foreign Purchases, 9:15 AM Industrial Production, Capacity Utilization, 2:00 PM Fed’s Beige Book, 2:00 AM German CPI, 1:55 PM ECB President Trichet Speaks.

Daily Strategy: The most important economic event today is the report for US Inflation. The inflation report today will send signal how strong could be the Fed interest rates cut. The expectations are for cut of US interest rates between 25 and 75 bps. The trading today is expecting in dynamic movements but as overall at the end of the day when is expecting ECB President Trichet Speaks the dollar to test the levels above 1.49 again.