USD: Wait and see mode

A quiet week ahead for the US in terms of data releases. The USD will continue to be supported as the US cyclical outperformance and renewed weakness in commodity prices benefits it relative to most of its peers. Moreover, the market's willingness to re-engage in fundamentals should support the USD and the long held view of further EURUSD downside. 

Last week's CPI inflation report assisted the view that the US economy is among the few places in the world able of generating inflation and the closest to normalizing interest rates. 

Data wise, we get some housing data (Existing and New home sales for June) and Markit preliminary Manufacturing PMI for July. None of these events should be market movers as market participants should continue focusing on inflation/wages data in the coming months.