USD: We attribute yesterdays spike low and slightly higher trade as a temporary technical reaction in the dollar. However, the USD will made a critical decision this morning after initial claims, and began trading lower again. Lingering hope of stimulus from U.S. congressional programs should halt the slide lower in the dollar. Traders can look for a bounce back to 9380 or so, but beware of more downside from there.

Euro: The euro deserves a measure of corrective action following the breakneck gains throughout July. We suspect that the net take away from German economic data overnight adds to the liquidation tilt this morning. The key event of the day is likely to take place after initial claims with recent action in the euro suggesting a concerning claims report can lift the euro. Suggesting that buyers wait for below 117150 to enter the long side.