EUROPEAN session review (05.08.2013): Dollar mixed

Data released (actual, consensus, previous):  

07:48 GMT France Markit Services PMI (Jul)  48.6    48.3    47.2         

07:53 GMT Germany Markit Services PMI (Jul)  51.3    52.5    50.4         

07:58 GMT EMU Markit Services PMI (Jul) 49.8    49.6    48.3         

07:58 GMT EMU Markit PMI Composite (Jul)  50.5    50.4    48.7         

08:28 GMT UK Markit Services PMI (Jul)  60.2    57.2    56.9         

08:30 GMT EMU Sentix Investor Confidence (Jul) -4.9    -10.0    -12.6

The dollar trades mixed versus main currencies after the release of services PMI for the UK and the Eurozone. 

The dollar has strengthened 5.4% in the past six months. The euro gained 2.9%, while the yen weakened 0.2%.

EURO:

Data released showed EU Markit Services PMI rose to 49.8 in July from 48.3 in June. 

Separate report showed German PMI Services increased to 51.3 points in July, from 50.4 points in June. 

EUR/USD slipped to the support area 1.3250/60 followed by 1.3200 (psychological level). On the upside, a break above 1.3290 would expose 1.3320 and then 1.3345 (high Jul.31).

POUND:

The Services PMI in the UK climbed to 60.2 during July, exceeding both the median (57.2) and June’s reading (56.9), extending the positive momentum of the British economy, ahead of the BoE’s Quarterly Inflation Report due on Wednesday. 

GBP/USD rose after PMI data were published. The next resistance is at 1.5420 and then 1.5480 (high Jun.25). A breakdown of 1.5240/60 would open the door to 1.5254 high Jul.31) and finally 1.5120.

YEN:

The yen continues to rise versus dollar. 

USD/JPY is near session lows on Y98.40 now with a break under widens losses to Y97.60 (Jul 31 lows). Initial resistance comes at Asian highs on Y99.00/10, above - at Y99.95 (channel line from Jul 7) and Y100.80 (Jul 19 highs).

DATA AHEAD:

US ISM Non-Manufacturing PMI is due at 14:00 GMT  and is expected to rise to 53.0  from 52.2  in July.  

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