EUROPEAN session review: Dollar is rising

Data released: 

08:00 GMT Germany Real GDP Growth 0.4% 0.5% 0.7% 

10:00 GMT EMU Trade Balance n.s.a. (Nov) €17.1B €17.0B €16.8B 

10:00 GMT EMU Trade Balance s.a. (Nov) €16B €16.7B €14.5B 

10:00 GMT UK CB Leading Economic Index (Nov) 0.5% _ 0.4% 

The dollar strengthened before the Federal Reserve releases its Beige Book business survey today. 

Alos investors welcomed a fresh economic-growth forecast from the World Bank. 

The World Bank raised its global growth forecast yesterday to 3.2% this year from a June estimate of 3%. 

EURO 

German data showed low but stable German growth 

Data released today showed Germany's price-adjusted GDP expanded 0.4% in 2013 slowing from the 0.7% rise in 2012. 

German export growth slowed to 0.6% from 3.2% in 2012. 

According to the rumors they've led the euro lower and are said to have been joined by specs who are building up shorts and looking for levels to break. 

EUR/USD trades close to $1.3600. Losses may widen to $1.3520 (Dec 3 lows). Initial resistance comes at Friday at $1.3685/95. Above - at $1.3720 and $1.3820 (Dec 30 highs). 

POUND 

The pound continues to slide. 

GBP/USD holds around $1.6400. Resistance remains at $1.6520 with stronger one - at $1.6580 (Dec 27 highs). Initial support is around $1.6320. 

YEN 

The yen stays in the narrow range. 

USD/JPY recovered to Y104.20 from recent lows on Y102.84. Below losses may extend to Y103.00 and Y102.20 (Dec 11 lows) and Y101.60/50 (Dec 5 lows). Minor resistance is around Friday’s high on Y105.33. 

DATA AHEAD: 

Later, at 13:30 GMT, Jan NY Empire State Manufacturing Index is due to come. The same time Dec PPI comes with 0.2% m/m and 0.8% y/y expected after -0.1% and 0.7% earlier.

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