EUR/USD

The better than expected Chicago PMI has come at 64.7. This data has helped the expectations that the growth pace of July will come better than June and this week US ISM manufacturing index can come better than expected too. The most important part of these data to the forex traders should be the employment index of this figure ahead of the release of US labor report of July by the end of the week. The market is expecting the non-farm payroll of July to be 230k the recent release of June was disappointing and it was just 120k. Breaking the psychological level at 1.2 can put 1.196 under the pressure of the stop loss triggering.

GBP/USD

The market expectation of a rate hike this Thursday can contain the sterling traders this week bidding it higher most of the times. We see that these expectations should be delayed waiting for UK PMI as a key on the growth pace in UK and how much was the impact of the recent hikes also the release of the industrial and manufacturing production of July will be released by god`s will by the MPC`s rate decision and their release can be much effective this week but you should appreciate the recent increase in housing prices which has hit a 15-month high last month and the increase of UK net lending which is increasing the possibility of a rate hike this Thursday.

USD/CHF

CHF may not get benefits from the geopolitical concerns as the market focusing now is on the growth pace of US after the cheeriness of Greenspan`s recent comments which have been followed with significant consuming confidence figure of July and this can underpin the pace of recovery in US in the coming period and the USD in the short run.

USD/JPY

JPY is still negatively impacted by the high oil prices which have lead to a slump in the Japanese equity market which is already negatively impacted by the decline of NASDAQ majors and their recent weak earning reports which have been followed by a profit taken. Also the expectation of a faster pace of hiking rate in US after the recent comments of Greenspan on the recovery in US can put the JPY under pressure especially as long as the deflation is still on in Japan in spite of the recent release of the Japan`s CPI of July which has came at -.1% just under the Zero figure.

Have a nice trading week