Bets for euro gains, the pair EUR/USD at 1.47$ or even 1.50$

Yesterday, the euro rose as high as $1.4573, according to Finotec.com trading platform, its highest since its 1999 launch. It was the ninth time in 11 days the euro advanced.

The U.S dollar fell to all-time lows against the euro and a basket of major currencies on Tuesday as the widening fallout of the U.S. home loan crisis reinforced expectations of a Federal Reserve rate cut in December.

A cut in U.S. interest rates is negative for the dollar; the Fed already lowered the rate by 0.75 points in the last two month and set the central bank rate at 4.5% citing as a factor its concern that turbulence in the U.S. financial sector could spill over into the wider economy. At the same time, analysts were waiting to see if the European Central Bank President Jean-Claude Trichet on Thursday would hint at a rate rise next month for the euro zone, for this month the expectation the ECB interest rate stays unchanged at 4.0%.

The trend is continuing, emerging market banks diversifying their foreign exchange reserves from dollars to euros by that supporting traders to be short on green back, some traders believe that the dollar "finished" an will not strengthen soon. Although, the majority of analyst agree the euro is now in overbought territory, but that won't necessarily stop the market from putting on more bets for euro gains and see the pair EUR/USD at 1.47$ or even 1.50$.

This morning, Australia's central bank raised its key cash rate a quarter of a percentage point to an 11-year high of 6.75 percent, a move widely expected given a red-hot economy and accelerating inflation. The Reserve Bank of Australia (RBA) held its monthly rate-setting meeting on Tuesday. The central bank has now raised rates five times since May last year in an effort to restrain inflation.

Today the main focus will be on the non farm productivity data and labor cost in U.S. at 13:30 GMT.

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