Red continues to be the predominant color for inflation data globally. From New Zealand, the U.K., and the States inflation figures the past two days have proven troubling. Most economists and central banks equate inflation with global growth. Weakness (including results of minus) within the PPI and CPI results do not bode well and could mean that recessionary pressures will get worse.

The USD has stayed strong across the board against the majors. The EUR, GBP, JPY, and AUD have all lost value to the Greenback throughout the week. Gold and Crude Oil also are trading near relative lows.

Equities did put in gains yesterday on most bourses. However, volumes on most indexes including Wall Street were low and will continue to be this way for the next few weeks.

CBI Industrial Order Expectations will be coming from the U.K. shortly. The FOMC Meeting Minutes will be published later. And China will see the HSBC Flash Manufacturing PMI numbers late tonight.

Tomorrow Europe will bring forward PMI data from Germany and France and the results will be watched closely by investors. Cynics are gaining voice on the continent, the scars from the financial crisis of 2008 are still clearly seen, the question is if they will again start to seep blood.

The EUR and GBP are intriguing trading prospects. The USD has been strong the past few weeks and has erased support levels consistently. With about three full weeks left of summer with low volumes, traders with good risk management may want to test the waters with a methodical approach.