Forex − Markets are quiet ahead of ECB rate decision – analysts expect a 50bp cut

Some news on forex. All the eyes are riveted on the advertisement of ECB today, much which expect a cut 50bp on the back of the continuous weakness in a total request. German manufacturing industry continued to weaken on the levels which are already contradictory with last projections of growth. Reputation of sovereign solvency of Greece reduced by S&P and reputations of solvency placed of Ireland, Spain and maintaining of Portugal being studied. Moreover new the not confirmed that Ireland sought IMF facilitate were honestly refuted by the two parts fed only the already dull feeling on the state of the European economy on a totality. The euro continues to be under presses as the EURUSD traded as low as 1.3094 yesterday before recovering slightly - in spite of the news of tern of the United States.

Many large banks in the euro area suffer from great declines in their stock while they bring back the great Q4 losses. The season of incomes not only took it is toll on their actions, but much from banks now give the attention to themselves as if they were in the extreme needs for others of funds of governments - in the United States the history is more or less even. Yesterday Deutsche Bank, HSBC and Barclays all suffered from great declines, Barclays not losing less than 14.5.

The retail sales of the United States missed the consensus of -1.2% and left to -2.7% while the beige book however paid dull less dark than the preceding release. In other developments, the group of ISIC announces that it will give up its current economic model as it amalgamates its operations of broking with Morgan Stanley. The comments by the JP Morgan which President Jamie Dimon de Chase that worst of this recession was to always come did not predict well with these opportunist which feels 2009 is the year of the re-establishment.

Nikkei of Japan took a success today while the Japanese orders of machines fell more in 21 years - adjudication of 16.2% as from October. The decline was largest since the data were compiled the first time in 1987 - the news brought to Yens 30 lower pips against the dollar, but the continued decoupling of Yens against of other currencies saw that Yens beats a retreat and managing to gain 0.3% against the dollar since yesterday.

While the execution of the dollar was mixed yesterday against various currencies she always managed to gain against many currencies in spite of the persistent one spell bad data of the ordinary actions of the United States. We expect that the dollar continues to gain in the close relation and medium-term while the aversion and the repatriation of risk continue to be the central themes with the action of the prices of banknote recently.