The Forex market is bracing itself for what could be an unpredictable week, as an influx of key economic releases and US Independence Day holiday is expected to add to the volatility of the market. US dollar traders will be eagerly awaiting the release of ISM Manufacturing and NON-Farm payroll data, while euro investors will see the Euro-zone inflation and German labour data. It is also expected that the European Central Bank will raise rates for the first time since last June.

Today see’s the first of the data being released, with the Euro-zone CPI Estimate. The Euro-zone Consumer Price index is expected to show an inflation figure of 3.9 percent, this would match the 16 year high seen last month.

German Unemployment Change and ISM manufacturing data is released on the 1st July, with German labour markets predicted to have improved in June, making its first gain in two years. Euro traders should keep an eye on the indicator during the session, especially against the US dollar. The ISM survey is expected to show that the conditions in the manufacturing sector held at 49, for the fifth consecutive month.

Thursday will see the release of European Central Bank Rate Decision and US Non-Farm Payrolls. Many analysts are predicting that the ECB will raise interest rates by 25 points to 4.25 percent. The Euro is likely to see a short term boost. The most important data to be released this week is the Non-Farm Payrolls report and if the unemployment rate drops to 5.4 percent down from 5.5 percent, the US dollar could see a surge at the data’s release.