The dollar index trade near a 13-1/2 month peak of 82.804

Good Morning,

- The Euro trade above a new yearly low at 1.3114 set on Asia, following an aimless session, as market activity hampered by a holiday in the US. Ukraine crisis with the risk of an imminent policy easing by the ECB still pressure the euro.

- Asian shares: Japan's Nikkei 1.24%, Hong Kong's Hang Seng 0.01% (07:15 GMT), Korea's Kospi -0.79%, Australia's ASX 200 0.49% and China's Shanghai 1.37%.

- The dollar index trade near a 13-1/2 month peak of 82.804.

- The Swiss economy lost pace in the second quarter as private consumption couldn’t make up for slowing exports, replicating stagnation in the surrounding euro area. Swiss gross domestic product was unchanged in the three months through June from the previous quarter, when it expanded 0.5 percent, the State Secretariat for Economic Affairs in Bern said in a statement today. That’s the weakest quarterly reading in two years and compares with a median estimate of 0.5 percent growth in a Bloomberg survey.

- Euro zone factories barely increased prices last month, and manufacturing activity in France fell at the fastest pace in 15 months data showed yesterday. A separate report confirmed the German economy contracted for the first time in over a year in the second quarter.

- French President Hollande and ECB President Draghi agreed on Monday that deflation and weak growth were threatening the EU economy.

- JP Morgan on EUR/USD: The pair bounces looks to be capped at 1.3341/79 within the intact downtrend, notes JP Morgan. "The broader down-rotation remains intact but faces an increased bounce risk above 1.3104/01 (pivot/weekly Ichimoku-lagging). Only below the latter we’d see fresh down-potential to 1.2916/08 (weekly trend/Fib.-projection)," JPM projects. "Given the extent of the latest down-cycle from 1.3701 in EUR/USD we are confident of dealing with an internal 3rd wave decline which could end at 1.3104/01 or at 1.2916/08. One of these support clusters will most likely provide the launch base for an internal 4th wave recovery," JPM clarifies. Such a temporary bounce, according to JPM , would however look fairly limited to 1.3341/79 (minor 38.2 %/daily trend) where a fresh selling opportunity would arise, JPM advises.

- German austerity ‘obsession’ is wrong. Germany's push for fiscal austerity is preventing the euro zone economy from growing—and instead, the region's debts should be written off in a "modern-day debt jubilee", a leading professor told CNBC on Monday.

- The Reserve Bank of Australia kept its key interest rate at a record low to support growth and spur hiring in an economy where unemployment is at a 12-year high. The overnight cash rate target was held at 2.5 percent for a 13th month, Governor Glenn Stevens said in a statement following an RBA board meeting in Adelaide. The decision was predicted by all economists surveyed by Bloomberg and markets had priced in almost no chance of a move.

- RBA Stevens: Australia’s expansion will be “a little below trend” in the year ahead. The local exchange rate “remains above most estimates of its fundamental value, particularly given the declines in key commodity prices,”… “It is offering less assistance than would normally be expected in achieving balanced growth in the economy.”

- China’s manufacturing expanded at a slower pace last month, data released yesterday showed, joining weaker-than-anticipated credit, production and investment data in suggesting the world’s second-largest economy is losing momentum.

Have a nice Day!