EUROPEAN session review: Investors paused for the dollar

Data released (actual, consensus, previous):    

06:45 GMT France Business Climate (Jun)  93    93    92         

08:00 GMT Italy Retail Sales s.a. (MoM) (Apr)   -0.1%   _     -0.3%         

08:00 GMT Italy Retail Sales n.s.a (YoY) (Apr)  -2.9%   _     -3.2%        

08:22 GMT Greece Current Account (YoY) (Apr)  €-1.187B   _     €-1.285B         

08:30 GMT UK BBA Mortgage Approvals (May)  36.1K    33.1K    32.2K 

10:00 GMT CBI Distributive Trades Survey, June 1      -1        -11

Investors paused for the dollar after the Fed’s Fisher indicated that an exit “is way out in the future” and that a dialing back would still leave policy accommodative. Meanwhile, the Fed’s Kochlerlakota said it was a misperception that the Fed had taken a more hawkish stance.

EURO:

Greece PASOK’s Venizelos confirmed as deputy PM. He has the joint role of deputy premier and Foreign Minister in the reshuffle officially announced last night, with New Democracy’s Mitsotakis appointed as the Administrative Reform Minister and Stournaras remaining in his position as Finance Minister. 

The new cabinet will be sworn in by President Papoulias at 12:30 Athens time today. 

EUR/USD compensated morning losses and stuck in the middle of day range. Initial resistance comes at $1.3160 (Jun 20 lows), then - at $1.3255/60 (Friday’s high) and $1.3300 (Jun 6 high). Below $1.3060 support comes at $1.3030 (61.8% Fibo of the $1.2790 - $1.3415 rise) and $1.2960 (Apr 24 and Jun 3 lows).

POUND:

The pound remains bid on the release of a better expected set of Mortgage Approvals that arrived as 36.1k vrs a consensus for 33.1k for May. 

CBI Distributive Trades Survey has shown indicator rose 1 versus -11 in May. 

GBP/USD set session highs at $1.5470. 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). Support comes at $1.5280 (Jun 4 lows), then - near $1.5140 (May 31 lows) and $1.5000 (May 29 lows).

YEN:

Yen is consolidating waiting for US data. 

USD/JPY holds 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.

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