EUR/USD: Now for U.S. ISM Manufacturing

EUR/USD actually saw some small gains for the USD, but this is technical and partially EUR/JPY trades hurting EUR.  The market looks for 25bps from the ECB in September and December and data plus splits on the ECB governing council means that the market is reluctant to discount a 3 cut before year-end. Focus now is switching to Tuesday ISM manufacturing data, where a weak number could reawaken jitters over a U.S. hard landing.  A number consistent with a U.S. soft landing could see chart correction pressure to 1.1000 in the next few days.