Independance Day continues the Euro hike.

The day with little expectations from the market since the US Market is closed for the big day. EUR/USD has reached 1.2820 once again yesterday during mid-London Session but failed to sustain the momentum. Eurozone PPI for the month of May matched consensus of 0.3% MoM and 6.0% YoY signalling economic growth for the year overall maintained strong while the monthly PPI were lower from previous month. The market is still not ruling out the ECB rate hike as soon as this week and if it's being done this week, we could possible see EUR/USD testing for 1.30 again at a faster pace. However, a pause for the ECB doesn't necessarily spelling doom for the currency, unless it's accompanied with a dovish statement from the 'action hero' Jean Claude 'Van Damme' Trichet. The possibility of this scenario to happen is still highly unlikely seeing the the eurozone economic growth is still robust and wouldn't have any problem to manage higher interest rates. A hawkish statement will however continue to push EUR/USD to a higher ground.

As the ECB hike is somehow 'confirmed' but the Fed hasn't really 'promised' a pause eventhough Fed Reserve Chairman Ben Bernanke already hinting that the next Fed Rate Hike Decision will fairly balanced on economy and inflation as well. The main push for the dollar to bounce back up is better than expected USD data a signal for USD bulls to show that the USD economic growth is not as slow as everyone expects it to be. The data that could bring up hopes the greenback to rise again this week will be the Factory Orders which is tomorrow, and Friday's Non-Farm Payroll plus Unemployment Rate for the month of June. If this is much better than expected, the hikes are back on the line.