EUR/USD

In spite of the US trade deficit of US of July which has come above 50 bln and the weak retail sales of August which has come less than expected at .3% and the weak PPI data which has declined to -.1% in august and the expectation of further weak inflation forces can be indicated from tomorrow`s US CPI of August too, the pair could not get over the resistance at 1.23 and has declined on the disappointing germane ZEW which has come strongly lower than expected at 38 in august. The market is still looking for further.25% rate hike this year on USD. The market is still looking into further industrial data from EU this week and August E-12 CPI however it is not expected to see a tightening this year from ECB in spite of the recent concerns on high oil prices.

GBP/USD

It is still under a strong pressure on the recent weak UK data (industrial production, manufacturing production, retail sales, and wide trade deficit of July). That is besides the recent slowing in housing prices as the recent monetary tightening has started to take effect clearly. Also we were waiting for this week CPI figure which has come too less than expected at 1.3% clarifying that there is no another rate tightening in the next MPC`s meeting at least which was not discounted yet. So we have seen the GBP declining across the broad and this can be continued over the short run especially after a psychological technical inability to be sustained above 1.8.

USD/CHF

It can be supported by the current sentiment that there is another expected .25% rate hike from the next FOMAC meeting. In spite of the recent mild inflation forces which have been seen from the recent PPI of August in US and indicated from the recent Greenspan`s comments. Also it is expected to see another feeble inflation CPI data tomorrow.

USD/JPY

It was under pressure on the recent current account and trade balance deficits but the high oil impact is still putting weights on the JPY which can find new buying on the half fiscal year inflows by the end of this month. It can continue to be traded in a mixed way.