ECB to hike the interest rates at least twice this yearby Forex Strategy Team Updated 05:40 GMT, July 02, 2008
EUR/USD (1.5818)
European & US sessions forecast levels: 1.5725/1.5895
Trend Sessions: European: Neutral/Upward
US: Neutral
Market Focus: 8:15 AM ADP Employment, 10:00 AM Factory Orders, 3:15
AM ECB President Trichet Speaks, 5:00 AM EU PPI.
Daily
Strategy: The dollar remains weak against the euro and
slowly continues to the record levels above 1.60. After very long time waiting
for European Central Bank interest rates raise finally tomorrow ECB will hike
the interest rates. It is widely expecting ECB to raise the interest rates with
25 bps and to signal that is necessary new interest rates rise. The ECB will
raise the interest rates due too the high inflation in the Euro Zone and
probably will be necessary new interest rates rise. For today we recommend
opening long positions, as buy on dips.
