USD Trading Outlook (05-07-2012)

U.S. Dollar Trading (USD) July 4^th celebrations kept the US session quiet with commodities and stock markets closed. The EUR/USD is continued to be weighed by the expectations of a rate cut today at the ECB meeting. The reaction to a rate cut will depend on the stock market reaction with a positive move to the policy action potentially resulting in gains for the EUR/USD. The more traditional response is a drop in the currency if you cut the interest rate investors receive. Looking ahead, Weekly Jobless Claims forecast at 385k vs. 386k previously. Also June ISM Services forecast at 53 vs. 53.7 previously. Also June ADP National Employment forecast at 105k vs. 133k previously.