A stack of negative fundamentals rose to the surface in unison to pressure the euro; Irish fiscal woes, a drop in German manufacturing data, and European banking system concerns.

Today’s Economic Data Releases:

GBP – Halifax HPI m/m
Expectation: -0.3%. Previous 0.6%.
Housing data for Britain has been weak since the beginning of the economic recession. The trend of a struggling British housing sector should continue and hurt the pound versus the majors.

Support and resistance levels for the GBP/USD are found at 1.5320 and 1.5490.

EUR – German Industrial Production m/m – 10:00 GMT
Expectation: 1.1%. Previous -0.6%.
Yesterday’s disappointing German factory orders may have been a prelude to today’s data release, highlighting the difficult month of August for the global economy.

The EUR/USD has declined for the past two days, pulling back into the symmetrical triangle pattern that had formed. Support is found at the rising lower leg of the triangle pattern at a price of 1.2660 followed by 1.2580.

CAD – Overnight Rate – 13:00 GMT
Expectation: 1.00%. Previous: 0.75%.
The Bank of Canada is expected to slow monetary policy by hiking interest rate by 25 basis points. This data has already been priced into the market, but should the BAC surprise traders by holding interest rates steady at 0.75%, the USD/CAD could rise to its resistance level of 1.0670.

USD – Beige Book – 18:00 GMT
The Fed’s analysis of the markets helps the central bank set policy decisions and interest rate levels. Negative remarks in the Beige Book could spark renewed safe haven buying.

The USD/CHF should target last week’s low of 1.0064.