We are waiting today for the MPC interest rate decision. The recent meeting minutes release have shown that The last decision of adding further 50b Stg to the BOE  previous stimulation quantitive easing plan to make the gross of it 175b decision was not unanimously and the market has been shocked by 3 members of the MPC voting for adding 75B Stg instead of just 50B Stg and one of those three was Marvin king himself. These opposing members have referred to the possibility of public confidence damage in the recovery which can flatter it suggesting that the inflation could be under the BOE target for a sustained period. The British pound was under pressure since the release of these dovish minutes and it could not get over 1.665 versus the greenback or even join the single currency pace of progress versus the greenback. So it looks that the market is smoothed today for further adding 25b Stg and if we are to have a greater ample of injected liquidity decision, the British pound can find further difficulties today.

The greenback has been under pressure today after a long weekend in US because of the Labor Day in the beginning of this week. The greenback started the week in the defensive side because of the equities market gains and the demand for the higher yielding currencies for taking risk after better than expected economic data from US referring to a diminishing of the recession pressure and the increasing of the inflation outlook which can come accompanied with the recovery which could help the gold to get above 1000$ today.

The single currency which was trading in a narrow range in the recent weeks facing a resistance at 1.44 could break it today triggering stop losing orders could push it above 1.45. The market was waiting last week to have a hawkish tone in Trichet speech after the ECB interest rate decision of keeping the interest rate unchanged at 1% but he has expressed his Prudence and caution but the market is looking not patience as him pushing the single currency up across the broad believing in the recovery in EU which can trigger tightening measures later this year by the ECB or at least a staving of its current easing steps for providing liquidity exposing the EUR.

There was no major change in the currencies market from the US labor report which has shown a slight better than expected US non-farm payroll figure of August coming at -216k and the market was waiting for -233k revising July figure to -463k from -443k with a rise of the US unemployment rate to 9.7% in August from 9.4% in July and an increasing of the average hourly earnings by .06$ to be 18.65$. The data have show that the US labor market is still struggling looking for the demand which can spur confidence and hiring back again. we have seen earlier this week that the US Q2 productivity has been revised up to 6.6% from 6.4% but the ADP employment figure of August has come worse than the market expectations of -250k at -298k too and these data show that there is still worries about hiring but the current labor unit is high utilized meeting an increasing of the demand which can be hopeful for the recovery

The US Q2 productivity has been revised up today to 6.6% from 6.4% but the ADP employment figure of August has come worse than the market expectations of -250k at -298k and these data show that there is still worries about hiring but the current labor unit is high utilized meeting an increasing of the demand which can be hopeful for the recovery. the US stocks have not reacted positively to the data to continue the profit taken wave which was waited to be continued after the rally we have mentioned in the recent analysis which started from the 9th of March when the Dow was trading below 6600 to touch 9600 last week but the forex market is still trading in a mixed way in a very tight ranges since the end of last week with no major change of the market sentiment which has been effected negatively by the rising worries about the sustainability of the recent better than expected economic performance in US the recent few weeks to spur the required solid growth.