24.06.2013 US session review:

Data released (actual, consensus, previous):   

08:00 GMT Germany IFO - Business Climate (Jun)  105.9    105.9    105.7        

08:00 GMT Germany IFO - Current Assessment (Jun)  109.4    109.6    110.0        

08:00 GMT Germany IFO - Expectations (Jun)  102.5    102.0    101.6        

08:00 GMT Italy Consumer Confidence (Jun)  95.7    86.3    86.4

The Dollar Index rose to a two-week high as investors fled higher-yielding currencies in favor of the relative safety of dollar-denominated assets.

The U.S. currency rose against the majority of its major counterparts before U.S. reports tomorrow that economists said will show durable-goods orders gained and house prices increased as the Federal Reserve may reduce monetary stimulus.

The yield differential between U.S. and German government securities increased to the widest in more than three years.

“The fundamental picture for the dollar is clearly positive,” said Marcus Hettinger, a currency strategist at Credit Suisse Group AG in Zurich. “The expectation that the Federal Reserve may start reducing asset purchases leads to higher U.S. yields supporting the dollar.”

Fed Bank of Dallas President Richard Fisher, one of the most vocal critics of the central bank’s quantitative easing, is due to talk about U.S. monetary policy and the economy today in London. This week will also see speeches from Bank of Atlanta President Dennis Lockhart, Bank of Richmond President Jeffrey Lacker, Bank of Cleveland President Sandra Pianalto and Bank of San Francisco President John Williams.

EURO:

The euro was steady after the release of an IFO number, which came pretty much in line with expectations for Germany. German IFO – Business Climate (June) came in at 105.9 vs consensus 105.7.

EUR/USD consolidates around $1.3100. A sustained break under $1.3100 (50% Fibo of the $1.2790 - $1.3415 rise) will widen losses to $1.3030 (61.8%) and $1.2960 (Apr 24 and Jun 3 lows). Initial resistance placed near $1.3160 (Jun 20 lows), then - at $1.3255/60 (Friday’s high) and $1.3300 (Jun 6 high).

POUND:

The pound continues to rise.

GBP/USD Initial resistance comes at $1.5450/60 (Friday’s hourly highs), then - at $1.5530 (Jun 21 high), stronger - near $1.5680 (Jun 19 highs). Below support comes at $1.5280 (Jun 4 lows), below - near $1.5140 (May 31 lows) and $1.5000 (May 29 lows).

YEN:

The yen compensated morning losses but stay quiet.

USD/JPY holds lower the Y98.80 resistance (50% Fibo of the Y103.80- Y93.80 decline). Above resistance comes at Y99.90/00 (61.8%). Initial support comes at Y98.00, with a break under targets Friday’s lows near Y96.90.

DATA AHEAD:

There is no key economic data for today, but in general this week weill be quite interesting, bringing GDP data from US and others. 

Link>>