The week starts with the release of no data from the Swiss economy, yet the U.S will release important data, at 14:00 GMT, which is ISM manufacturing for July; the reading is expected to show an ease in expansion to 55.0 compared with June’s reading of 55.3, noting that a reading above 50 means expansion and vice versa. The U.S. data may have a significant impact on the pair if it signaled any surprise.
In the week ended July 29, the market sentiment was negative on concerns the U.S. may be prone to a downgrade to its AAA credit rating as well as possible default due to the delay ofU.S.officials to approve debt-ceiling increase plan.
Also, U.S. GDP data showed a strong slowdown in growth to 1.3% from the revised 0.9% which was 1.9% initially, adding to the mounting concerns.
On Monday, the attention will be towards manufacturing data which may give some indication about the status of the economy in the third quarter after strong ease in expansion witnessed in the second quarter.