EUROPEAN session review: Dollar slipped after positive UK and German data

Data released (actual, consensus, previous):        

07:00 GMT UK Halifax House Prices (3m/YoY) (Jul)  4.6%    4.3%    3.7%         

07:00 GMT UK Halifax House Prices (MoM) (Jul)  0.9%    0.5%    0.7%     

08:30 GMT UK Industrial Production (YoY) (Jun)  1.2%    0.6%    -2.3%         

08:30 GMT UK Industrial Production (MoM) (Jun)   1.1%    0.7%    0.0%         

08:30 GMT UK Manufacturing Production (MoM) (Jun)   1.9%    0.9%    -0.7%     

08:30 GMT UK Manufacturing Production (YoY) (Jun)  2.0%    0.9%    -2.9%     

09:00 GMT DE Factory Orders s.a. (Jun)  3.8% m/m, 4.3% y/y

The dollar slipped a bit after positive UK and German data. 

The dollar has strengthened 5.1% this year, the euro rose 5.7%, while the yen slumped 8.7%.

EURO:

German factory orders rose by 3.8% M/M in June and the prior moth’s decline was revised from –1.3% to –0.5%, so another strong result there. The details are always slow to come out, but the shipments figures will give us a better tracking for German IP tomorrow morning 

EUR/USD rose after upbeat data. The initial barrier at 1.3320/40 and finally 1.3420. On the other hand, a break below 1.3200 (psychological level) would target 1.3160/80.

POUND:

The pound rose as high as $1.5390 after UK manufacturing data surprised investors. After the recent improvement in the key Services PMI, the manufacturing and industrial production exceeded the median in June, advancing at an annual rate of 2.0% and 1.2%, respectively, leaving behind May’s contraction. 

GBP/USD retreated to $1.5350, a bit lower recent highs on $1.5390 (initial resistance). Below $1.5300 support is around $1.5260 (Monday’s lows) and the key one - at $1.5100 (Aug 2 lows). Above $1.5375 resistance is around $1.5416 (Jul 26 highs) and $1.5480 (Jun 25 highs).

YEN:

The yen erased its earlier gains. 

USD/JPY is near Y98.12, above session lows on Y97.80 (initial support). Below losses may widen to Y97.00 and channel line from Jul 7 at Y96.80. Initial resistance comes at Y98.80 (Monday’s hourly high) and Y99.90 (channel line from Jul 7), then - Y100.80 (Jul 19 highs).

DATA AHEAD:

UK’s data continue at 14:00 GMT  with  NIESR GDP Estimate. 

At 22:45 GMT  NZ Unemployment Rate (Q2) is expected at  6.3% vs  6.2%.

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