USD/CHF Daily Fundamental Analysis As the Swiss economy lacks economic data, the main focus will be new home sales for April due at 14:00 GMT which will provide evidence about the status of the housing market, where analyst predict to see a drop to 0.0% from the prior 11.1%. On Monday, Swiss M3 money supply inched up to 6.9% in the year ending April from the revised 6.8%, yet the news did not have an impact on the pair's movements. Eyes will track US housing data after the downbeat housing data released the week ending May 20 which raised concerns about the sector that erupted the financial crisis in 2008, pushing the dollar to the downside. The outlook for the pair remains to the upside as the dollar is predicted to continue its rebound against the franc after having a breather in the week ending May 20 as the SNB expects growth to be slow this year because of the strong franc and thereby may have keep borrowing cost low for longer period to avoid further appreciation to the franc. GBP/USD Daily Fundamental Analysis As of 08:30 GMT, UK public sector net borrowing for April will show decline in deficit to 4.4 billion pounds from 16.4 billion pounds, according to median estimates, while public finances will record 2.5 billion pounds deficit from 24.5 billion pounds deficit. In the US, new home sales will be due at 14:00 GMT, where analysts predict to see a slow in growth to 1.7% from the prior 11.1%. An improvement in public finance may help the pound to rebound after the pair did a slight upside correction the week ending May 20. On the other hand, another decline in US housing, following the previous drop in the week ending May 20 may halt the dollar's rally, therefore pushing the pair to the upside. However, the outlook for the pair remains to the downside as the end of the US $600 billion bond-purchase program in June may lower the supply of dollar from markets and thereby give support to the green currency, whereas the prospects for the British economy are uncertain after the wave of weak second quarter data. USD/JPY Daily Fundamental Analysis The USD/JPY pair continued trading in a narrow range, after the dollar retreated against its major counterparts in a correctional movement for the previous rally. On the other hand, the Japanese currency is mixed across the FOREX market with the absence of Japanese fundamentals. The US dollar lost momentum against majors early Tuesday, as the possible retreat in new home sales in U.S. is reduced demand for greenback. However, the risk aversion could be the next scenario for the dollar to be back to control the FOREX market amid prevailing jitters over the outlook for the global recovery and mounting fiscal imbalances in Europe. The Japanese economy is waiting for another disappointing flow of data with the merchandise trade balance for April, which is expected to record a deficit affected by the devastating March 11 earthquake. On Wednesday at 23:50 GMT (Tuesday), Japan will release adjusted merchandise trade balance for April, where it's expected to show a deficit of 703.7 billion yen after the previous surplus of 196.5 billion yen. The adjusted trade balance is forecasted to record a deficit of 695.9 billon yen after a surplus of 96.3 billion yen. Exports are expected to decline by an annual 12.7% from the previous decline of 2.2%. Imports are expected with 12.8% annual rise following 11.9%. At 12:30 GMT the U.S economy will release the durable goods orders for April, which is expected to fall by 2.5% after rising 2.5%. Durable goods orders exclude transportation is forecasted to come at 0.9% lower than the previous of 1.3%. The U.S. economy will issue the house price index for March at 14:00 GMT, where it's expected to come at –0.6% compared with the previous–1.6%.

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