ECB Rate Decision due at 7:45 AM. No change expected.

Written September 3, 2009 at 7:42 AM EST by  

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The ECB Rate decision at 7:45 AM.  No rate change is expected. Of note willof course be the comments from ECB Trichet at 8:30. 

In the Eurozone today, the Servive PMI came in at 49.9  expectation of 49.5.  The Retail Sales Report came in at -0.2% MoM (vs +0.1% exp) and -1.8% YoY (vs. -2.2% exp). The prior month was revised higher to 0.0% from -0.2% and -2.0% vs -2.4% YoY. 

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From a technical perspective, the EURUSD is up with the weakness in the dollar. There is rumblings in the market that the gold increase yesterday may be a program out of China to diversify out of the dollar. Gold continues to be bought today and this will likely keep that story alive.  The pair has resistance against the trendline at the 1.4352 level.  Above that is another trendline at 1.4392.  The high for 2009 comes in at 1.4447.   On the downside, the pair moved back above the 100 and 200 hour MA along with the 50% retracment level at the 1.4291 area. The market will ultimately need to stay above these levels today. 

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Before that level is the 1.4313 to 1.4318 level where highs and the 61.8% retracements levels are located.

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