EUR/USD

The recent Greenspan`s comments have slowed down the expected pace of tightening rate in US. He has stressed over the mild inflation forces and the slow growth. The market is expecting just another .25% by the end of this year. We have tomorrow the US trade balance of July. We expect this figure to record a new high trade deficit number on the recent high oil prices.

GBP/USD

GBP has faced many weak data recently. As Aug retail sales +0.6% in year ending in Aug, lowest since December. Also UK industrial production and manufacturing production and today`s UK trade balance which has jumped to 5.159 sterling, exceeding estimates of 4.8 bln. The market is expecting also another .25% rate hike by the end of the year. The market has started to see signs of the recent hike impact on the housing prices in UK. GBP can be under further pressure till we see again new inflations signs in UK.

USD/CHF

The pair can face a draw down on an expected wide trade deficit tomorrow. See tomorrow`s Swiss Q2 GDP q/q.

USD/JPY

The pair has got a push higher from today`s unexpected drop of the US jobless claim of this week to 319k, after the weak machinery orders of August. The pair can face decline on the US wide trade deficit tomorrow. Please take care.