EUR/USD (1.3544)
Trading range: 1.3475 – 1.3610
Trend: Neutral
On the market the euro/dollar consolidate at the levels of 1.3540. The reason for the consolidation is the expecting data for the US inflation that will signal what Fed will do with the interest rates this year. The euro remains strong against the dollar because is widely expecting ECB to increase the interest rates at least once during 2007. For the month of rate increase is shown June. The expectations for today trading are movements into both directions. The most important time for trading is 8:30 AM when are expecting fresh data for US CPI, Core CPI and NY Empire State Index.
USD/JPY (120.33)
Trading range: 119.95 – 120.50
Trend: Neutral
The yen touch the key resistance at 120.52 that is forming as 3-months low level after the release of Japan machinery orders data. After that was pushing the expectations that BoJ will raise the interest rates only gradually. If the yen breaks above the key resistance at 120.52 we will see movement to 120.75 turning back to 120.40/45 and again new movement with target 121.
Forecast by Angel Kolev, expert in ForexStrategy Team - For more forecasts and signals visit - www.forex-strategy.com
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