EUROPEAN session review: Euro is still under pressure

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 continues to rise against the main currencies after the U.S. reported stronger-than-forecast economic data, spurring speculation the Federal Reserve will reduce bond purchases. 

Euro has got an additional presures as European Central Bank President Mario Draghi said the euro-area economy’s condition still requires a stimulative monetary policy. German consumer confidence data were ignored by markets.

EURO:

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

EUR/USD almost reached key support at $1.3010. Below  support comes at $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. 

Also BOE Tucker noted the rates will only rise when economy has "achieved escape velocity" 

GBP/USD has reached support at $1.5360 and going to make some upward correction. 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 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 below 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>>