Today the center the market’s attention was directed to the decision of ECB Governing Council on the basic rates. ECB left the basic rate without change, at a level of 4,0 % per annum, thus, the differential of rates between ECB and FRS rates remained without change.

This decision was expected by the market, therefore the main attention of the market was concentrated on comments of ECB Head Trichet, given by him at press conference by results of meeting of ECB Governing Council.

Trichet noted that volatility in the financial markets for the past some weeks increased a level of uneasiness of the markets concerning economy of the Eurozone. Therefore, he emphasized for decision-making on change of exchange rate policy it is necessary to investigate more carefully a situation in the markets.

Trichet assured the markets that Governing Council will follow and control the events happening in economy, and guaranteed price stability.

Investors also noted that there was no term «special vigilance» concerning inflationary risks absent in Trichet’s rhetoric of an estimation of a current economic situation.

Let's remind that this phrase in his last interviews to mass media made market analysts to expect increase of rates in September. As for inflation ECB keep its former forecast for 2007 and 2008, in Trichet’s opinion inflationary background remains within the limits of 2 % per annum. And concerning economic rise Trichet was already less optimistical than at the previous meeting of the Governing Council, GDP growth in 2008 will drop a little, to 2,3 % from 2,5 % per annum in 2007.

As a whole ECB position changed cardinally in comparison with June meeting of Governing Council when the rate was raised by 0,25 %, and in comments to this decision more rigid notes were observed. ECB, on behalf of Trichet sounded determination not to stop at the achieved level of the rate of 4 % and showed readiness to lift it up to 4,25 % by the end of year. However economic realities of the Eurozone brought the corrective amendments. The EU economy managed to cope with the increased level of inflationary background though it was on a background of some reduction in rates of economical growth.

After ECB today the Bank of England has made decision to keep the rate at a former level, at a level of 5,75 % per annum.

Thus, two largest European banks left rates without change, now the market attention will be concentrated on the rate of the Federal Reserve of the USA, we remind that the decision on the federal funds rate will be made at FOMC meeting on September, 18th.

As a matter of fact, the direction of the basic dollar trend for the last quarter of this year will depend on this decision,. If FRS reduces the rate the dollar cannot be kept below a price top any more - 1,385 dollars for euro.

Among analysts there is no common opinion about FRS rates. As showed last reports of Association of Realtors the situation in the market of the real estate continues to worsen, crisis in this sector starts to spread to other branches of economy.

On the other hand FRS points out that the inflationary background still remains high, and a rise in oil prices for last days, caused by Felix hurricane approach to oil fields in Gulf of Mexico and drop in oil stocks only warms up inflationary component.

Today growth of oil quotations after issue of data of oil stocks has again caused splash in sales of dollar against the basic world currencies. Oil stocks in the USA decreased for a week which finished on August, 31st, 2007, EIA and API informed.

According to EIA, oil stocks in the country were down 3,9 million barrels to 329,7 million.

Petroleum stocks dipped by 1,5 million barrels to 191,1 million, distillates stocks grew by 2,3 million barrels to 132,2 million.

Analysts forecast that oil stocks will reduce by 0,5 million barrels, petroleum stocks - by 1,3 million, and distillates will be up 1,0 million barrels.

Tomorrow the market will wait for the key report on employment It is rather important market indicator having the maximum degree of importance on 6 grade scale of the importance of financial news in the USA. It includes 4 basic components and the indicator of the labor market:

Average Workweek

Hourly Earnings

Nonfarm Payrolls

Unemployment Rate

In this list indicators Nonfarm Payrolls and Unemployment Rate are especially important. The increase in the first and reduction of the last – support dollar and on the contrary reduction of the first parameter and increase in the second one - put pressure upon dollar.

Analysts expect that rise in nonfarm payrolls in August will raise up to 110 000 against July data 92000. And the unemployment remains without changes, at 4,6 %.

Shorts on euro and pound sterling if parameter Nonfarm Payrolls is better than predicted values, and Unemployment Rate is at a former level or decreases.

Longs on euro and pound sterling if Nonfarm Payrolls is worse than the previous values and worse than forecasts, and Unemployment Rate is at a former level or increases.

If Nonfarm Payrolls are in a range above expectations, but are worse than the previous data, or Unemployment Rate - the is in the contradiction with data on NP we remain outside of the market.