Euro Lost Downside Momentum ahead of ECB and a Busy Week European majors were generally lower against dollar and yen last week as markets were preparing or ECB easing actions on June 5. However, downside momentum in Euro, Swiss France and Sterling, was rather unconvincing. The majority of the markets expected the latest staff economic projection to be released this week to show inflation would stay well below the 2% target. And, ECB would likely lower all three main interest rates. The main refinancing rate could be cut from current 0.25% to 0.05%. Deposit rate could be cut correspondingly into negative territory. Meanwhile, ECB is expected to offer long-term loans to banks and pause sterilization of the crisis bond purchases. All these actions would likely boost lending and weaken the common currency. While quantitative easing is a topic to be discussed among policymakers, it would most likely not adopted this time. However, traders seemed to have scaled back some of the expectations on ECB, and there's clearly seen in the slowing pace in Euro's fall towards the end of last week. Full Report Here... | 
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