The US equity market could contain Thursday correction and Dow could close at 8574. These interior corrections keep the equities markets rally from a major correction technically until now. The market has seen last Friday that the Jobs market is getting better too but at a slower pace than the gradual pace of the other sectors of the US economy!. The non-farm payroll have lost just 539k in April and wall street was waiting for losing 610k and march lost jobs have been revised up to 699k to bring the total lost jobs to 5.7m since the recession beginning in Dec 2007.

The market has seen that it is another good sign and we may find positive numbers later this year by these weaker paces of contractions in April. We have seen earlier that US April ISM non-Manufacturing index has improved to 43.7 from 40.8 in March and better than the market expectations of 42.5 following April ISM Manufacturing index which came better than expected at 40.1.

The greenback has found support today from the decline of the equities markets in a beginning of a profit taken wave coming by the release of today US labor report of April which is expected to show a decline of non-farm payroll by 631k and rising of the unemployment rate to 8.8% from 8.5% in March. The market expectations have got better after the release of US April ADP changes which come at just -491k! following earlier Bernanke's testimony which referred to a gradual recovery and stablizing in the housing market and a current slower pace of contraction but By God's Will, if the US non-farm pay roll came worse than the earlier market consensus of -631k this can cause a problem to the recent equities markets rallies as the market is waiting to see even a softer pace of laying off as the unemployment current pace can undermine the consuming sentiment which have improved recently as we have seen US.

By god's will, we are looking forward for the ECB interest rate decision later today. We expect it to come as widely expected with a cut by another .25% with an elevating of the current deflation risks with no additional untraditional easing steps following US and UK in their adopted quantitive easing policy.

The ECB has referred to the inflation pressure that can resulted from adopting this policy and in the same time Trichet has downplayed the deflation risks in the Euro zone over the medium term but it was the first time to the ECB to refer to this policy in its meeting which has been read as a smoothing to the market as they always do to avoid market shocks.

The optimisms momentum of equity market has been faded during today trading giving back the greenback some of its recent loses versus the European currencies. The greenback has suffered in the beginning of this week across the broad from the increased risk apatite of the investors hoping for a closer recovery from the current recession which pushed the S&P 500 to get over this year loses closing above 900 again and also the Dow which could accelerate its gains reaching 8426 could hold these gains closing above 8400 in spite of today losing momentum. The markets were waiting for Bernanke's testimony today but we have not found something new as he has repeated the recent US assessment of the fed referring to the current slower pace of contraction and the gradual pace of economic recovery.