The USD is headed for a second weekly drop versus the EUR ahead of the release of today's Non Farm data today at 12:30 GMT. The expectation is for a drop in 65,000 jobs in July, after a decline of 125,000 positions the previous month. This report will be particularly interesting to see as U.S. initial jobless claims rose 19,000 to 479,000 in the week ended July 31, according to yesterday's report by the Labor department. Negative employment numbers may fuels speculations the Federal Reserve may consider further stimulus measures a at its policy meeting next week.

Also today, data may show German industrial production grew for a fourth month. The report is due at 10:00 GMT. Earlier today a report showed British manufacturing expanded the previous month; however, the numbers came less than expected, causing the Pound to retreat some of its gains versus the USD.