EUROPEAN session review: investors wait for next week news

Data released (actual, consensus, previous):
06:00 DE Import Price Index (YoY) (Jun) -2.2%        -2.9%        
06:00 DE Import Price Index (MoM) (Jun) -0.8%        -0.4%        
06:45 FR Consumer Confidence (Jul) 82    79    79

 

The day is quite enough because of lack of breaking news on the market. Investors prefer to discuss next week news.

For example, experts don’t expect any change in monetary policy at the next ECB meeting. However, persistently weak credit growth, slipping inflation expectations, and the ongoing liquidity drain raise the risk of rate cuts in the coming months.

 

EURO:
Continues to slide amid fixing longs because of lack of news.

EUR/USD next support is at 1.3200 (psychological level) followed by 1.3180. On the upside, a breakout of 1.3302 (high Jun.20) would open the door to 1.3325 (low Jun.18) and then 1.3417 (high Jun.19).

 

POUND:
The pound continues to rise.

GBP/USD has tested resistance at $1.5390/00 (Jul 22-23 highs and 61.8% Fibo of the $1.5750 - $1.4810 decline). Initial support remains at daily lows on $1.5260, then - at $1.5180 (Tuesday’s lows) with a break lower widens losses to $1.5150 (Jul 18 lows) and $1.5080 (Jul 17 lows).

 

YEN:
Higher than expected consumer prices in Japan for the month of July, with the Core CPI contracting 0.2% vs. -0.4% previous, are giving extra credit to the PM S.Abe in its battle to eradicate the entrenched deflation. That should help limit the downside for USD/JPY – although the outlook for monetary policy in the US is still key and the bigger driver at present.

USD/JPY the immediate support is at 98.20 (low Jul.11) followed by 97.50. On the upside, a break above 99.40 (high Jul.26) would expose 100.50 and finally 101.05 (high Jul.22).

 

DATA AHEAD:
At 13:55 GMT Jul Reuters/Michigan Consumer Sentiment Index is due to come. 

 

Source of information>>

More information>>