Today's Report

* Transparency is one of the fundamental components of the ECB’s monetary policy strategy. Therefore, a 50bp rate cut tonight seems like a done deal. Trichet is known to be against working on the market assumption. Transparency and predictability are deemed to be two of the most important elements to ensure price stability. So, in my simple words, we expect no drama from Trichet tonight.

* EUR/USD recovers mildly after dipping to 1.3140 but still, intraday bias remains on the downside as long as 1.3444 minor resistance holds. As discussed before, consolidation from 1.2329 has possibly completed at 1.4719 already. Further decline should be seen to 1.2549 support first then retest 1.2329 low.

* We have a slew of important economic news coming in, namely ECB interest rate announcement at 8.45 pm followed by their press conference 45 minutes later. US PPI, and Empire State Manufacturing Index will be released at 9.30 pm simultaneously followed by Philly Fed Manufacturing Index at 11.00 pm. Quite a day, huh?

* Live trading: Sold EUR/USD 1.3165 [Closed +16]
Sold EUR/USD 1.3120 [Closed +50]