Euro: Watch for a Break of 1.37

Even though the Euro started the week on a softer footing, it has now recovered close all of those losses. German and French unemployment numbers are expected to be strong tomorrow even though retail PMI across the region should be weak.

German consumer confidence has already deteriorated for the month of September. However these economic releases will most likely be only secondary triggers for moves in the Euro. Instead, all eyes will be on US data, the credit markets and any comments from ECB officials. So far, the central bank has kept us guessing on what to expect in September. Meanwhile the Swiss KoF leading indicators report deteriorated from 2.09 down to 2.06 in the month of August. Swiss economic data has been on a downtrend, which suggests that the central bank will leave interest rates unchanged next month.