UK industrial production growth is anticipated to slow in June although factory output should still hold at the best levels in almost six years, as higher interest rates have yet to derail the recovery of the manufacturing sector.

The Chinese currency gained against the US Dollar and British pound following comments from Asia Pacific members in the overnight session.

The US dollar tumbled for yet another trading day, as bearish Non-Farm Payrolls data sent the greenback significantly lower against major trading counterparts.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for August 3.

The stability of the US economy hinges on the strength of the labor market because non-farm payrolls could easily make or break it for the US dollar.

The hope for a strong non-farm payrolls report tomorrow has helped keep equities, carry trades and USD/JPY in positive territory for most of the US trading session.

The non-farm payroll report is becoming increasingly important as continued health in the US labor market is necessary to maintain personal spending growth, which makes up nearly 70 percent of the economy.

Chinese officials are committed to currency elasticity and further financial restructuring, Secretary of the Treasury Paulson said following his visit to China.

The US dollar continued on overall bearish momentum, as disappointing Factory Orders data allowed greenback bears to push the currency lower ahead of tomorrow’s critical Non-Farm Payrolls report.

Currency technical analyst Jamie Saettele analyzes the British pound against the Japanese yen, Swiss franc, and Australian dollar.