All eyes on Euro and Sterling today

The main focus has been on the US this week after the economic data out for the currency has been better than expected.

Economic commentators are now questioning the severity of the US economy. ADP employment came in at 40k when it was expected at -30k, this figure will effect the very important non-farm payroll figure out on Friday, which now is expected to have a reduced downside shock.

Non-farm productivity came in higher at 2.6% than its expected 2.5%, ISM Services came in at 51.7 vs. its 51.00, which showed another good sign as it impressed by going above the 50 threshold.  The main data out of the US is the weekly jobless claims, expected to be good at 374k.

All eyes today will be on the Euro and Sterling as they have their rate announcements, which are both expected to be kept on hold, Euro being 4% and UK being 5%. Both Euro and Sterling did not do too well yesterday as data which came out from both areas were worse than expected. Retail Sales for Euro, came in at -0.6% from its expected 0.2%.  For UK Services PHI came in below 50 at 49.8, its lowest in 4 years.