EUROPEAN session review: dollar still rises

Data released (actual, consensus, previous):   

08:30 GMT UK Public Sector Net Borrowing, May  £10.535B  £6.623B

The dollar continues to rise. This is the biggest weekly gain versus the yen since 2009 and added versus other main currencies, having surged after Federal Reserve Chairman Ben S. Bernanke outlined the case for U.S. stimulus to be withdrawn as the economy keeps improving. 

Accordoing to experts' opinion, the Fed has more confidence in the momentum of the economy, there’s more distance between us and the financial crisis, and now is the right time to just start thinking about the normalization of policy. It’s trying to change market psychology to be more reliant on the real economy and on the outlook for company earnings.

EURO: remain under pressure after selloff caused by Bernanke’s speech. Weak European data added pressure on the common currency. 

EUR/USD  tried to rebound after yesterday’s selloff. Support is around $1.3170 (Jun 10 lows) and $1.3100 (Jun 6 high). Above $1.3300 and $1.3400 (initial resistance, Jan 14 highs) resistance comes at $1.3480, then - near $1.3540 (channel resistance line from May 29).

POUND:

UK pound resumed bearish move. According to report, Public Sector Net Borrowing was £10.535B in May versus £6.623B in April. 

GBP/USD  took a tumble as the 1.5500 level could not be breached. For short-term supports at 1.5433, ahead of 1.5370, and 1.5325. On the ascension, resistive measures are found at 1.5541, then 1.5586, and ultimately 1.5649.

YEN:

Head of BOJ’s Kuroda said that economy is picking up. 

USD/JPY  still try to break Y98.00. The upside move is targeting Y98.80, for a close above Y99.00 and to reach the psychological Y100.00 the June highs. Minor support placed at Y96.00, ahead of Y95.00.

DATA AHEAD:

At 14:00 GMT US CB Leading Indicator, as well as Existing Home Sales data and  Philadelphia Fed Manufacturing Survey are expected.

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