Non-farm payrolls were right in line with expectations, triggering a broad based dollar rally.  How much further can it rise?

Although the economic calendar is very light, Canada will be releasing what can typically be a very market moving indicator for the Canadian dollar – IVEY PMI. The IVEY PMI report measures the country’s manufacturing activity which tends to be a strong leading indicator for growth.

In the vaults of various central banks around the world lies $4.8 trillion worth of foreign currency reserves -- the fruit of selling oil and widgets, mainly to U.S. consumers.

Non-farm payrolls for the month of June are due for release this Thursday, but with the Federal Reserve no longer looking to cut interest rates, will the degree of payroll growth actually have meaningful impact on the US dollar?

The US dollar has weakened ahead of the June non-farm payrolls report. According to payroll provider ADP and Challenger Gray and Christmas, the US labor market deteriorated significantly last month.

There is little doubt in the markets that the European Central Bank will raise rates on Thursday, as ECB President Jean-Claude Trichet remains the most hawkish central banker around.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for July 2.

Unemployment is rising. And now, carpenters, plumbers and even granite countertop installers are getting jobs with the banks. They're finding work maintaining foreclosed houses.

The US dollar has been driven higher by big reversals in the stock market and in the manufacturing sector.

Price growth at the factory gate in the Euro-zone is anticipated to accelerate even faster in May, as Eurostat is anticipated to report a 0.9 percent rise in the producer price index (PPI).  Furthermore, PPI is forecasted to surge 6.7 percent in May from a year earlier, the sharpest increase on record.