Yes the US CPI of august has shown a mild inflation forces in US according to
the recent comments of Greenspan which can have a negative impact on the rate
outlook in US and USD attractiveness as well. The figure has followed with a
weak Philadelphia business index figure which has come at 13.4 and the expected
was 25. This has helped the pair to come over 1.22 by the end of the week. The
pair is expected to face a resistance here on the expectation of a FOMAC`s .25%
rate rise this week and of coursed this should be accompanied with an assessment
showing the serious need of this hike can help the USD further in a week free of
the important key data.


It has got a strong support from august surprising rise of retail sales which
have grown at .6% refreshing the hope of further .25% rate hike by the end of
the year after the disappointing 1.3% CPI of August of UK.


CHF has not got a considerable push from the SNB .25% rate hike last week. But
it is expected to see USD firmness by the rate decision.


The pair can be fueled this week by the Fed`s rate decision and current high oil
prices above 40$ per barrel. But the JPY may have some help by the end of the
month on the half fiscal year inflows by the end of this month.