Euro and pound sterling positions remain constant today in absence of significant news from New World. The European currencies have been supported today after an issue of positive data of German institute IFO.

The sentiment index in business circles of Germany has considerably grown in January. Optimism of business circles has sharply grown in January, and this month the business sentiment index IFO has reached a mark of 102,0, having exceeded December value, when was also observed the unexpected index rise. The value of IFO index for December has been revised to increase up to 99.7 from 99.6. Economists expected that growth of IFO index in January would be insignificant - up to 99.7.

The companies’ estimation of their own prospects for the nearest six months has considerably improved. The corresponding index of expectations has grown up to 103,6, that is the highest indicator for more than 10 years. In December value of this index made 99,6. The index of current conditions has also raised up to 100,4 in comparison with 99,6 in December.

The most considerable improvement of sentiment has been observed in building sector where the sentiment index rose up to 21,2 from 29,0. Growth of the index in this sector is the fourth month in a row. The sentiment index among the retail trade companies has come up to-12,4 from -19,5. Growth of optimism in industrial sector has proceeded, and the corresponding index has climbed up to 136, in comparison with 8,8 in December.

On Tuesday the Belgian national bank informed on unexpected dip of the business sentiment index in January after the growth within the last months. The majority of economists expect ECB interest rates increase on 0,25 percentage points in March though some of them say that the probability of rates rise in February increases.

Sentiment in sector of a manufacturing industry of France were stabilized in January at a level a little above a long-term average as industrial output cut is offset by orders growth, especially external, according to the monthly review of the institute of national statistics.

The pound sterling has got support after an issue of data on the UK  gross domestic product for the 4 quarter of 2005. According to official data, the economy of the UK rose 0.6 % in the 4 quarter against the last quarter on a background of solid growth in service sector.

Thus, it is the first period of so-called trend rise (0.6 % q/q) since the 4 quarters of 2004. In annual calculation the rise was 1.7 %, not having changed against the last quarter. From these data, overwhelming majority of Bank of England Board has voted the rate of Bank of England to leave without changes.

However, it is most likely that the quotations cannot poise so long at the consolidated levels.

Let's remind that this week the market expects key news over the USA: the monthly housing market report, Existing Home Sales is expected tomorrow.

Source: The National Association of Realtors.

Time of the issue - 10-00 a.m. ET, 15-00 GMT.

This report on the housing market shows a level of existing home sales. The report is regarded by the market as rather significant indicator of activity in economic sector of the real estate and the building industry.

And on Friday the Gross Domestic Product report is expected from the Bureau of Economic Analysis, U.S. Department of Commerce for the 4 quarter, the first preliminary report. GDP data is the most important criterion of economic activity of the state. As a rule, the market watches dynamics of this market indicator very closely. Positive GDP data in the USA always influence positively on dollar.

The recommendations on opened Longs remain constant.

Longs, opened according to last recommendations:

«Technically medium term uptrend has a potential of development. The 3 wave of a trend has not yet realized its potential, have not developed, therefore the postponed Longs from a level 1,2186 have good prospects, with the purposes 1 1,2310 and 2-1,2450.»

On pound sterling the same levels, a key level of opening Long - 1,7800, the purpose 1 - 1,7930, the perspective purpose-1,8050. Stop is not closer than 150 points."

On euro - the price has reached the 1 purpose, therefore - 1,2300, on 2 purposes stop should be moved in make-out.

On pound sterling - the price has reached the first purpose - 1,7930, stop on the 2 order is kept at a former level 1,7750.