ASIA session review (26.06.2013): Dollar rises vs main rivals

Data released (actual, consensus, previous):   

06:00    DE    EUR    Gfk Consumer Confidence Survey (Jul)    6.8    6.5    6.5        

06:00    CH    CHF    UBS Consumption Indicator (May)    1.46        1.46        

07:30    EMU    EUR    ECB President Draghi's Speech

The dollar rose against the euro for a fifth day after the U.S. reported stronger-than-forecast economic data, spurring speculation the Federal Reserve will reduce bond purchases.

The greenback erased an earlier loss as U.S. factory orders rose more than forecast in May and consumer confidence for June exceeded projections. The common currency weakened as European Central Bank President Mario Draghi said the euro-area economy’s condition still requires a stimulative monetary policy

This quarter, the euro has led all major gainers with a 2.1% increase, while the worst-performing Australian dollar has slipped 11%. The greenback is the best-performing currency in 2013.

EURO:

remain under pressure as ECB's Draghi said can't have a monetary union with permanent creditors, debtors.

EUR/USD has pierced  yesterday’s lows on $1.3060. Below  support comes at $1.3030 (61.8% Fibo of the $1.2790 - $1.3415 rise) and $1.2960 (Apr 24 and Jun 3 lows). The initial resistance comes at $1.3160 (Jun 20 lows), then - at $1.3255/60 (Friday’s high) and $1.3300 (Jun 6 high).

POUND:

The pound remains under pressure after BOE’s Miles said UK economic recovery remains weak, assets buys might help.

GBP/USD retreats from session highs, but in general trades above yesterday’s lows on $1.5340 (support now). Below support comes at $1.5280 (Jun 4 lows), then - near $1.5140 (May 31 lows) and $1.5000 (May 29 lows). 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).

YEN:

The yen has gained 2.7% to the greenback this month.

The yen strengthened for a second day with a host of U.S. central bankers scheduled to speak this week after two Federal Reserve presidents yesterday emphasized that policy remains accommodative.

USD/JPY holds near Y97.50, below 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 Y97.20, with a break under targets Friday’s lows near Y96.90.

DATA AHEAD:

At 12:30 GMT focus will be at US Q1 GDP with 2.4% y/y expected after 2.4% initially reported.

At 14:30 GMT  EIA Crude Oil Stocks change (Jun 21) come.

At 22:45 GMT New Zealand reports May Trade Balance.

Link>>