After falling broadly on Friday due to positive US GDP data as well as an upswing in optimism, the US Dollar took another quick hit to start the week in Asia, but the setback was only temporary. The Dollar slide was fueled by a quick round of systems based buying of EUR/USD that sent the pair flying through stops and through the 1.4300 big figure. Traders quickly jumped on the band wagon and sold dollars across the board as the EUR/USD eventually topped out at an almost two month high of 1.4309. Most dollar based pairs followed the same pattern, but the moves were gradually erased as the dollar crept back out from the lows as the day progressed. EUR/USD eventually looked to end lower near 1.4240 for the session. The only currencies that used the US Dollar hiccup as a launch pad were the Aussie and the Kiwi dollars, the AUD/USD of which made a 10 month high near 0.8392 before softening near 0.8370 levels close to the day's end. NZD/USD hit a 10 month high as well, near 0.6652, but eased off close to 0.6625 by London's open. The Yen moves proved uneventful at best, with USD/JPY stuck in a 23 pip range and EUR/JPY hitting an early 135.42 high, but eventually shedding 60 pips to its session lows. Looking ahead, UK Manufacturing PMI should excite in London, and US ISM Manufacturing PMI data in New York could help bring direction to the dollar.

Upcoming Economic Data Releases (London Session) prior expected

8/3/20096:00GE Retail Sales (MoM) JUN 0.40%0.50%
8/3/20096:00GE Retail Sales (YoY) JUN -2.90%0.90%
03-07 AUGAUG UK Halifax House Prices sa (MoM) JUL -0.50%0.60%
03-07 AUGAUG UK Halifax House Price 3Mths/Year JUL -15.00%-12.30%
8/3/20097:30SZ SVME-Purchasing Managers Index JUL 41.843.6
8/3/20097:50FR PMI Manufacturing JUL F 47.947.9
8/3/20097:55GE PMI Manufacturing JUL F 45.245.2
8/3/20098:00EC PMI Manufacturing JUL F 4646
8/3/20098:30UK PMI Manufacturing JUL 4747.8