EUR/USD 1.2782-1.2875    

GBP/USD 1.5354-1.5422     

GBP/EUR 1.1958-1.2048

The USD is stronger today as the Euro gave up its gains. The Euro weakened amid renewed concern sovereign-debt risk will hinder the fiscal health of European banks, denting prospects for the region’s economic recovery.

As a result the Pound now trading above € 1.2000, and holding around the $ 1.54000 technical support level.

EUR/USD currently 1.2762. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5368. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2039. Support 1.1850, resistance 1.2100.

Oil $ 73.7     Gold $ 1250    

Stock Markets:

Dow +1.2%     FTSE -0.4%     Nikkei -0.8%

A relatively quiet session yesterday. Still concerns over whether the U.S. economy is sliding into a double dip recession will see global stocks remaining nervous for a while. The USD is trading just above important support of €/$ 1.2700 level. Fed Chairman Bernanke will be speaking later today at 3pm, which could lead to some volatility. The Pound trading within this week’s ranges. Any intervention by the Bank of Japan  could perhaps help support the Euro and Pound in the short term.

EUR/USD currently 1.2706. Support 1.2400, resistance 1.2700.

GBP/USD currently 1.5505. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2200. Support 1.2100, resistance 1.2400.

Oil $ 73.3     Gold $ 1239    

Stock Markets:

Dow -0.7%     FTSE +0.9%     Nikkei +1%

Have a great bank holiday weekend.

EUR/USD 1.2651-1.2735     GBP/USD 1.5462-1.5570     GBP/EUR 1.2206-1.2257

We have seen a correction on the USD overnight to the weaker side. Stock markets a little higher despite the worst U.S. new home sales figures since 1965. There is growing speculation that the Bank of Japan may intervene to weaken the Yen (15 year high yesterday), this has been the reason some Euro and GBP purchases/profit taking has been seen ahead of this anticipated intervention.

The Pound bounced of the major support level of $ 1.5400 (current $ 1.5570) and holding around € 1.2250 levels.

EUR/USD currently 1.2717. Support 1.2400, resistance 1.2700.

GBP/USD currently 1.5535. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2216. Support 1.2100, resistance 1.2400.

Oil $ 72.6     Gold $ 1242    

Stock Markets:       Dow +0.2%     FTSE -0.9%     Nikkei +0.7%

The USD remains well supported with EUR/DLR moving as low as 1.2585 before staging a recovery off of the lows. The pound seems to be trading comfortably below the strong technical level at 1.5500 and with stock markets looking weak currently the stronger dollar trend is likely to continue for the time being. The sovereign debt issues that plagued the euro earlier in the year are beginning to resurface again as rating agencies warned that Spain’s rating will be reviewed in September and also yesterday S and P cut Irelands rating to a negative outlook. So for the time being the stronger dollar trend looks set to prevail.

EUR/USD currently 1.2650. Support 1.2450, resistance 1.2700.

GBP/USD currently 1.5390. Support 1.5100, resistance 1.5500.

GBP/EUR currently 1.2165. Support 1.2100, resistance 1.2400.

The USD remains well bid. Stock markets are lower again on downbeat economic growth expectations giving the USD `safe haven’ support. Both the Euro and Pound lower. Technically the €/$ has broken the 1.2700 level, which now targets 1.2400 levels. The Pound has played catch up against the Euro overnight, now trading below € 1.2200 and yesterdays support level of $ 1.5400. The main reason being, new MPC member Martin Weale stated that ` Britain faces the risk of sliding into recession’. Not good news for the Pound.

EUR/USD currently 1.2636. Support 1.2400, resistance 1.2700.

GBP/USD currently 1.5395. Support 1.5100, resistance 1.5400.

GBP/EUR currently 1.2285. Support 1.2100, resistance 1.2400.

Oil $ 72.4     Gold $ 1223    

Stock Markets:       Dow -0.4%     FTSE +0.8%     Nikkei -1.3%

The USD closed stronger on the week as stock markets weakened. Today the levels relatively unchanged. Worth noting ECB’s Webber stated it would be wise to extend unlimited liquidity to banks beyond 2010, the Euro remains a little soft versus a basket of currencies.

The Pound is now lower on the day from opening levels after a downbeat economic report

http://noir.bloomberg.com/apps/news?pid=20601010&sid=agx.OFaS8228

EUR/USD currently 1.2711. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5555. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2240. Support 1.2100, resistance 1.2400.

The USD a little stronger today, as stock markets weaken globally. This follows new claims in the U.S. for unemployment benefits as they hit a nine month high, far worse than expected.

In the UK there is a glimmer of hope for an economic recovery, as retail sales showed a dramatic increase and a deeper decline was seen in the budget deficit (PSNBR). A surge in corporation tax receipts and a slide in government borrowing added weight that the government will further rein in the deficit over the course of the year.  Overall tight range trading has been seen over the week.

EUR/USD currently 1.2787. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5528. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2165. Support 1.2100, resistance 1.2400.

Oil $ 74.3     Gold $ 1234    

Stock Markets:       Dow -1.4%     FTSE -1.7%     Nikkei -2.0%

Sterling gains sharply on robust UK retail sales

Sterling jumped more than a cent against the dollar  today after surprisingly strong UK retail sales data and traded at € 1.2200, which raises hopes that the economy can maintain momentum in the third quarter. Also reported, an improvement in Public Sector Borrowing

The Euro demand from China over the last few sessions has dampened somewhat as the Euro failed to rally above €/$ 1.2900 and opened today just above €/$ 1.2800 level, having been sold this morning after today’s German inflation data showed an increase (PPI).

EUR/USD currently 1.2829. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5645. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2149. Support 1.2183, resistance 1.2400.

All very quiet in the currency markets overnight, with levels relatively unchanged. We have today some inflationary data. The USD more or less at yesterdays levels, and the Pound still trading close to € 1.2200. The usual concerns remain, depth of any economic recovery on a global basis, as well as the vulnerability of the European banking sector despite those recent health checks.

EUR/USD currently 1.2889. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5647. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2135. Support 1.2100, resistance 1.2400.

Oil $ 75.4     Gold $ 1227    

Stock Markets:       Dow Flat     FTSE Flat     Nikkei -0.4%

Last week proved a better week for the USD as worries about the strength of the global recovery led to short-covering and safe haven demand for the US currency. However the USD a little weaker today at the opening, after reports that China have been buying European based Bonds over US treasuries (further diversification). Eyes will be on stock markets also, as Japans GDP shows a very much downbeat number earlier today.

The Pound is a little stronger against the USD as we open at $1.5620, and holding firm against the Euro at €1.2200 level.

EUR/USD currently 1.2810. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5620. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2200. Support 1.2100, resistance 1.2400.

Oil $ 75.8     Gold $ 1222    

Stock Markets:     Dow -0.2%     FTSE +0.2%     Nikkei -0.6%

The Euro recovers after early data this morning from Germany. Their economy grew at the fastest pace since the country’s reunification two decades ago in the second quarter as the global recovery boosted exports and companies stepped up investment. The economies of Southern Europe and Ireland remain a concern going forward.

The Pound still trading above € 1.2100 support level and below $ 1.5700 resistance level. Markets today will probably respond to other data due today (see below).

EUR/USD currently 1.2854. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5646. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2170. Support 1.2100, resistance 1.2400.

Oil $ 76.6     Gold $ 1218    

Stock Markets:

Dow -0.6%     FTSE +0.4%     Nikkei +0.4%

With recent downbeat global economic data, fears of a double dip recession saw the USD strengthen as stock markets slumped. The Euro was sold yesterday afternoon, as the ECB purchased Irish Government debt, further evidence that any signs of an economic recovery has also stalled in the Euro Zone. In the U.K. Mervyn King confirmed that economic growth expectations would be lowered which initially saw the Pound sold, however the Pound recovered aggressively against the Euro after the ECB activity. The Pound now trading above yesterdays resistance of € 1.2100 and below support of $ 1.5700.

EUR/USD currently 1.2906. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5670. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.2140. Support 1.2100, resistance 1.2400.

Oil $ 77.5     Gold $ 1200    

Stock Markets: Dow -2.5%     FTSE -2.4%     Nikkei -0.9%

As mentioned yesterday, the U.S. Fed Reserve have acknowledged that economic growth has slowed and intends to keep interest rates on hold for an extended period. They have not discounted further monetary stimulus.

Overall stock markets have reacted to the downside. The USD mixed after the Fed meeting.

Meanwhile in the UK, the Bank of England is expected to downgrade its forecast for economic growth today. The Pound is holding firm against the Euro (testing € 1.2100 level this a.m.) after U.K. trade data showed an improvement yesterday, and is relatively unchanged versus the USD.

EUR/USD currently 1.3034. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5703. Support 1.5700, resistance 1.6000.

GBP/EUR currently 1.2038. Support 1.1850, resistance 1.2100.

Oil $ 79.6     Gold $ 1202    

Stock Markets:

Dow -0.5%     FTSE -0.6%     Nikkei -2.7%

Overnight saw profit taking on the USD. Short USD positions were squared ahead of the Fed Reserves rate decision tonight. Although rates will remain unchanged, there is a possibility Fed Chairman Bernanke will indicate that a further stimulus package may be required to boost the economy, after recent economic data has been disappointing.

In the U.K. the RICS housing survey last night confirmed demand from buyers  is falling as estate agents reported price falls for the first time in a year. Also last night the British Retail Consortium confirmed high street spending has also fallen. The Pound has fallen today, as fears of a double dip recession hit the press . UK trade balance is due this morning.

EUR/USD currently 1.3160. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5800. Support 1.5700, resistance 1.6000.

GBP/EUR currently 1.2005. Support 1.1850, resistance 1.2100.

Oil $ 81     Gold $ 1202    

Stock Markets: Dow +0.4%     FTSE +1.5%     Nikkei -0.2%

Fridays downbeat U.S. jobs data leaves the USD vulnerable. The U.S. economic data continues to disappoint and there are now some suggestions out there that further stimulus will be needed. U.S rates will remain low for some time to come.

In the UK there are some reports that the Bank of England will lower its growth forecasts in its economic health check due on Wednesday. However the Pound still holding above € 1.2000 (next resistance 1.2100), and above 1.5950 (next resistance 1.6000.)

EUR/USD currently 1.3264. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5953. Support 1.5700, resistance 1.6000.

GBP/EUR currently 1.2026. Support 1.1850, resistance 1.2100.

Oil $ 81.2     Gold $ 1210    

Stock Markets:

Dow -0.2%     FTSE -0.6%     Nikkei -0.7%

The dollar is little changed against the euro and pound overnight after the Bank of England and ECB left interests rates unchanged as expected yesterday. Traders are also wary of building large positions ahead of the US payrolls report due to be released later today.

Strong German industrial data and signs that Spain and Greece are making progress in trimming budget deficits lifted the euro, as did US data showing an unexpected rise in US jobless claims.

The pound had fallen early on after Barclays released weaker than expected earnings but recovered to test the day’s highs on the back of the euro rally. Overall the pound traded to a low of 1.5818 and a high of 1.5927 before closing in New York at 1.5880.The markets now await the important US payrolls to be released at 1.30 pm today for further clues on the health of the US economy. The current dollar weakening trend is still in place but it’s looking increasingly like we are going to trade out a consolidation range for a while, unless the US payrolls are sufficiently weak/strong to trigger the next move.

EUR/USD currently 1.3202. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5904. Support 1.5800, resistance 1.6300.

GBP/EUR currently 1.2045. Support 1.1850, resistance 1.2100.

Have a great weekend

Unswayed by the UK's estimated 1.1% growth in GDP between April and June, the Monetary Policy Committee (MPC) maintained rates at the level they have been at since March 2009

The dollar had a better day yesterday and regained some of its recent losses against the Euro and the Pound. Better than expected reports on private payrolls and the services industry dampened worries about the US economy’s growth prospects ,leading to short covering ahead of the US employment data due out tomorrow.

The pound fell after gaining in seven of the last nine days, as for the first time in recent weeks a couple of positive economic indicators on the US economy were released on the same day.

The overall dollar downtrend is still in place, but it looks like we could enter a consolidation phase for a while after the recent sharp moves.

EUR/USD currently 1.3130. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5845. Support 1.5800, resistance 1.6300.

GBP/EUR currently 1.2065. Support 1.1850, resistance 1.2100.

The dollar has been trading around its lows against the euro and pound overnight and this morning as further talk of US central bank easing as early as next week kept the pressure on the greenback. As mentioned yesterday the market view currently is that growth is likely to be stronger in Europe and Asia and therefore the likelihood is interest rates will rise in these regions before the US. Economic numbers released from the US yesterday reinforced that view with factory output and new home sales both falling more than expected. The dollar weakening trend is still firmly in place but slowing somewhat in momentum.

EUR/USD currently 1.3220. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5930. Support 1.5800, resistance 1.6300.

GBP/EUR currently 1.2048. Support 1.1850, resistance 1.2100

The dollar weakening trend continued yesterday as the dollar index hit a three month low on continuing fears that Europe and Asian growth will outpace the US in the months ahead. The Euro rally picked up steam after it broke through the key 1.3125 level leading many analysts to predict a move higher to the 1.35 level in coming weeks. The pound also rallied against the weakening dollar taking out a big technical level at 1.5800 helped by a large GBP buy order due to the acquisition of several hundred RBS branches by Banco de Santander. The next area of any significant resistance is around the 1.6500 level. The weakening dollar trend looks set to continue with analysts predicting that Central banks in Europe are more likely to raise interest rates before the US after the recent poor economic numbers from the US. 

EUR/USD currently 1.3170. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5760. Support 1.5800, resistance 1.6300.

GBP/EUR currently 1.2068. Support 1.1850, resistance 1.2100.

The dollar closed last week on the back foot again as US GDP for the second quarter came in lower than expected at 2.4% with the Q1 number also revised lower. The dollars cause was not helped by the Former US Central bank chief Alan Greenspan who was quoted as saying the current slowdown in the US feels like a quasi recession.

The pound had another good day and is almost at its next big technical level at 1.5800 helped by a report in the Sunday Times from Goldman Sachs predicting the UK economy will outperform the US and Euro zone over the coming months. The current trends look likely to continue as we start the new month.

EUR/USD currently 1.3070. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5805. Support 1.5500, resistance 1.5800.

GBP/EUR currently 1.2091. Support 1.1850, resistance 1.2100.

Markets relatively quiet overnight, however USD weakness continues. Should we close above €/$ 1.3050, this would give some indication that further USD weakness is technically possible (1.3300 zone next target). The Pound a little weaker after early selling at the opening against the Euro, and looking technically set to test the resistance of £/$ 1.5700 levels. However, BoE Governor Mervyn King warned yesterday that a sustained economic recovery  was still uncertain and inflation would remain above the 2% target for the next year. U.S. durable goods data gave little help to the USD’s cause, recording the steepest drop since August 2009.

EUR/USD currently 1.3040. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5625. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.1985. Support 1.1850, resistance 1.2100.

 Oil $ 77.2     Gold $ 1169    

Stock Markets:

Dow -0.4%     FTSE -0.9%     Nikkei -0.6%

Strong UK sales data from the CBI and a higher than expected German consumer confidence reading, saw the USD hold onto its continued down trend. We open again above €/$ 1.3000, and around £/$ 1.5600 (next target 1.5700 area). A weaker U.S. consumer confidence reading did not help the USD’s cause with focus now moving to today’s U.S. durable goods data due at 1.30pm.

The Pound also holding onto gains against a basket of currencies, as we open at £/€ 1.2000 level (next resistance 1.2100).

EUR/USD currently 1.3048. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5558. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.1985. Support 1.1850, resistance 1.2100.

Oil $ 78.8     Gold $ 1188    

Stock Markets:

Dow +0.1%     FTSE +0.3%     Nikkei +2.7%

Fed Chairman Bernanke expressed concern over the U.S. economy warning that the economy faced `unusually uncertain prospects’ and hinted that the Fed would be prepared to take steps to bolster growth if needed. The Bank of England minutes were released yesterday, and further Q/E was muted, the first time since February. There are now doubts as to the credibility of the European bank stress tests which will be announced tomorrow, and as a result the USD strengthened and the Euro weakened against a basket of currencies. The Pound still trading above € 1.1850, having seen a € 1.1935 high yesterday.

EUR/USD currently 1.2780. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5192. Support 1.5100, resistance 1.5400.

GBP/EUR currently 1.1885. Support 1.1600, resistance 1.1850.

Oil $ 76.4     Gold $ 1183    

Stock Markets: Dow -1.1%     FTSE -0.4%     Nikkei -0.6%

The USD a little stronger today. Having seen the Euro test €/$ 1.3000 resistance levels again (3^rd time), the speculative market looks to be square ahead of the major European bank stress test results  due on Friday, which are expected to be well received. 

The Pound a little stronger today even though the public finance borrowing requirement showed an increase above expectations for the month of June. Despite this, Industrial forecasts from the CBI state that the recovery will continue in fits and starts, and insist that Britain is not heading for a double dip recession. We have tested above the resistance level today of £/€ 1.1850.

EUR/USD currently 1.2851. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5270. Support 1.5100, resistance 1.5400.

GBP/EUR currently 1.1899. Support 1.1600, resistance 1.1850.

Oil $ 77.7     Gold $ 1189    

Stock Markets:

Dow +0.7%     FTSE -0.3%     Nikkei -0.2%

The USD is weaker this morning after U.S. housing confidence from home builders dropped to its lowest level since April 2009, raising the chances of a double dip in the housing market.

The Euro discounted the breakdown of Hungary’s negotiations with International lenders as well as the downgrade of Irelands debt rating, and is  trading on U.S. economic weakness and currently testing the €/$ 1.3000 resistance level of yesterday.

The Pound also weakened against the Euro yesterday, and looks range bound now between € 1.160-1.18500. The euphoria of the new government and budget appears to have run its course for the time being.

EUR/USD currently 1.2939. Support 1.3000, resistance 1.3300.

GBP/USD currently 1.5204. Support 1.5100, resistance 1.5400.

GBP/EUR currently 1.1745. Support 1.1600, resistance 1.1850.

Oil $ 76.90     Gold $ 1184    

Stock Markets:

Dow +0.6%     FTSE -0.2%     Nikkei -1.2%

Friday saw the July Michigan confidence data disappoint and the U.S. stock markets were sold and closed considerably lower. Global stocks have followed suit, and as a result the USD was stronger in the Far East session today.

We await this week (Friday) for the results of the European Bank’s stress tests, and IMF head (Strauss- Kahn) states that he is confident that all major European banks have sufficient capital. Further selling of the Euro occurred today in the Far East as ratings agency Moody’s cut the Government bond rating of Ireland, however a large buy order this morning in Europe has seen the Euro trade near to Fridays highs against the USD.

The Pound now trading below Friday’s technical support level of € 1.1850.

EUR/USD currently 1.2970. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5318. Support 1.5100, resistance 1.5400.

GBP/EUR currently 1.1809. Support 1.1600, resistance 1.1850.

Oil $ 75.90     Gold $ 1191    

Stock Markets:

Dow -2.5%     FTSE -0.5%     Nikkei -2.9%

The USD weakness continues against a basket of currencies, as the €/$ reached a two month high. In the U.S. Federal Reserve’s latest minutes, policy makers were concerned that the U.S. recovery may be slowing and even discussed the possibility of further monetary stimulus. The problem for the Fed, is as to how aggressive they should be as the economy slows further. Although corporate earnings have been positive this week, economic indicators still suggest sluggishness.

The Pound also trading at a four month high against the USD (high over night 1.5288) in response to the positive employment data from the U.K. yesterday. £/€ appears to be stuck in a range of 1.1900-1.2000 (next resistance 1.2100).

EUR/USD currently 1.2720. Support 1.2700, resistance 1.3000.

GBP/USD currently 1.5268. Support 1.5100, resistance 1.5400.

GBP/EUR currently 1.2000. Support 1.1850, resistance 1.2100.

Oil $ 76.80     Gold $ 1211    

Stock Markets:

Dow Unchanged     FTSE Unchanged     Nikkei -1%

The Euro eased back again yesterday from the two month high against the USD of last week. Markets await results on the European bank stress tests next week. Details of the stress tests on 91 European banks are due on 23^rd July as the European Union seeks to restore confidence in the sector.

The Pound also a little weaker today after seeing good demand yesterday below $ 1.5000 and ahead of € 1.1900. Short term the USD shows some strength as we enter Q2 reporting season for major corporations.Yesterday Alcoa Inc (largest U.S. aluminum producers) beat market expectations for Q2 profits.

EUR/USD currently 1.2555. Support 1.2400, resistance 1.2700.

GBP/USD currently 1.4994. Support 1.4800, resistance 1.5100.

GBP/EUR currently 1.1962. Support 1.1850, resistance 1.2100.

Oil $ 75.60     Gold $ 1209    

Stock Markets:      Dow +0.6%     FTSE +0.5%     Nikkei -0.4%

The Pound opens weaker today. According to the Office of National Statistics, the total of Britain’s national debt is at least £ 2 trillion, somewhat more than previously thought. The next technical support levels to watch this week are € 1.1850 and $ 1.4800. Although recent economic data from Germany has been positive, there are still concerns over Southern Europe’s sovereign debt issues, hence the U.S. dollar a little stronger today across a broad range of currencies. China reports another set of strong export data, this is due to forward orders ahead of the Yuan strengthening further. Global stock markets continue to strengthen.

EUR/USD currently 1.2572. Support 1.2400, resistance 1.2700.

GBP/USD currently 1.4979. Support 1.4800, resistance 1.5100.

GBP/EUR currently 1.1911. Support 1.1850, resistance 1.2100.

Oil $ 75.60     Gold $ 1209    

Stock Markets:   Dow +0.6%     FTSE +0.5%     Nikkei -0.4%

As stock markets continue to gain, so does the Euro after yesterday’s German manufacturing orders showed a firm increase well above expectations. We open here around major resistance of €/$ 1.2700. Over the last week liquidity concerns in the Euro Zone have eased, adding to short term confidence.

The Pound although holding against the USD, was initially sold against a basket of currencies yesterday, as IMF marked down growth expectations for the UK (although still higher than that of Euro Zone growth forecasts). UK Rates remain unchanged, and according to RBS predictions, no expected rate increases until May 2011. Next technical support levels at € 1.1850 and $1.5100. Market sentiment is still to buy the Pound on any dips versus the Euro.

EUR/USD currently 1.2691. Support 1.2400, resistance 1.2700.

GBP/USD currently 1.5201. Support 1.5100, resistance 1.5400.

GBP/EUR currently 1.1974. Support 1.1850, resistance 1.2100.

Oil $ 75.90     Gold $ 1197    

Stock Markets:

Dow +1.2%     FTSE +1.8%     Nikkei +0.5%

EUR/USD 1.2520 – 1.2563     GBP/USD 1.5150 – 1.5226    GBP/EUR 1.2098 – 1.2118

The USD eased further on Friday especially against the euro extending the previous day’s losses on concerns over the US economic recovery after disappointing US June payroll data.

The euro rallied sharply last week as markets seem to be looking beyond economic problems in the euro zone and instead focus on the possibility of a stalled economic recovery in the US.

EUR/USD currently 1.2539. Support 1.2400, resistance 1.2700.

GBP/USD currently 1.5170. Support 1.5000, resistance 1.5500.

 GBP/EUR currently 1.2103. Support 1.1900, resistance 1.2400

Markets relatively quiet, although the Euro found some support yesterday after a successful Spanish bond auction. The pessimism over Europe’s fiscal woes have somewhat receded over the last few weeks, however €/$ 1.2400 level offers very strong resistance. There are still concerns over the Spanish debt situation, as the head of the IMF meets with Spanish leaders today.

The Pound trading above £/$ 1.4800 level, and should we close above 1.4850, 1.5100 would be the next technical target. Range looks set for £/€ 1.1850-1.2100, and market prefers to buy the Pound on any `dips’ for the time being.

EUR/USD currently 1.2393. Support 1.2100, resistance 1.2400.

GBP/USD currently 1.4862. Support 1.4800, resistance 1.5100.

GBP/EUR currently 1.1980. Support 1.1850, resistance 1.2100.

Oil $ 76    Gold $ 1246   

Stock Markets:

Dow +0.2%      FTSE +0.3%      Nikkei Flat

EUR/USD 1.2245-1.2313     GBP/USD 1.4646-1.4735     GBP/EUR 1.1988-1.1953

The Pound is weaker today after Chancellor Osborne confirmed in his speech to the City last night that changes will be made to the financial system and the ways it will be regulated. The FSA will be scrapped, giving the Bank of England more power, and details will be announced in the next budget of a levy to be imposed on the banks. The immediate concern is as to whether this will restrict UK economic recovery. It is also reported that the true cost to BP in relation to its oil spill, could balloon as much as possibly $60billion.

Stock markets are expected to open weaker. Today also sees European Heads meet in Brussels in an attempt to calm market fears, and confirm that sovereign debt issues are `under control’. There appears to be a split between Germany and France over the potential centralization of Euro budget controls which the French are pushing for.

The USD a little stronger after the short term selling seen in the last week.

EUR/USD currently 1.2245. Support 1.2100, resistance 1.2400.

GBP/USD currently 1.4652. Support 1.4500, resistance 1.4800.

GBP/EUR currently 1.1965. Support 1.1850, resistance 1.2100.

Oil $ 77    Gold $ 1235   

Stock Markets:

Dow +0.5%      FTSE +0.4%      Nikkei -0.7%

EUR/USD 1.2170-1.2231      

GBP/USD 1.4698-1.4765      

GBP/EUR 1.2060-1.2081

During yesterday’s session, Euro Zone Industrial Production data gave support to the Euro which drifted higher during the course of the day. However €/$ has now given back all its gains after credit rating agency Moody’s downgraded Greece’s debt rating to junk status. Eyes will be focused on Germany’s economic sentiment index due at 10.00am today.

The Pound held up relatively well despite confirmation of the UK’s bulging deficit and the downbeat growth expectations, although government borrowing is expected to be lower than previous forecasts. Resistance at £/€ 1.2100 and £/$ 1.4800. CPI inflation data today at 9.30am.

EUR/USD currently 1.2192. Support 1.2100, resistance 1.2400.

GBP/USD currently 1.4746. Support 1.4500, resistance 1.4800.

GBP/EUR currently 1.2092. Support 1.1850, resistance 1.2100.

Oil $ 74.8    Gold $ 1224   

Stock Markets:

Dow -0.2%      FTSE +0.7%      Nikkei +0.1%

EUR/USD 1.2109-1.2207   GBP/USD 1.4547-1.466    GBP/EUR 1.1966-1.2029

The USD holds onto its recent correction to the downside after last week's U.S. economic data was somewhat sluggish against expectations. Friday saw some profit taking in the Pound ahead of today's U.K report on economic growth forecasts from the newly formed Office for Budget Responsibility. Expectations are for a sharply revised downward number compared to that of former Chancellor Darlings projections. Some however, view the bad news for the Pound has now been seen, £/€ 1.2100 remains the technical barrier to break (1.1850support).

Stock markets are a little firmer in the Far East this morning, and today we have the latest Euro Zone Industrial Production data for April due at 10.00am.

EUR/USD currently 1.2181. Support 1.2100, resistance 1.2400.

GBP/USD currently 1.4658. Support 1.4500, resistance 1.4800.

GBP/EUR currently 1.2035. Support 1.1850, resistance 1.2100.

Oil $ 74.8 Gold $ 1231

Stock Markets:

Dow +0.6% FTSE -0.8% Nikkei +1.8%

EUR/USD 1.2094-1.2146     GBP/USD 1.4696-1.4741     GBP/EUR 1.2123-1.2175

Another down day for the USD, stocks continued to rally, as did the Pound. There was strong demand for Spanish bonds giving a further boost to confidence. A modest fall in U.S. jobless claims was also enough to add support to global stocks. There has been talk also of the possibility for the Chinese Renminbi/Yuan revaluation this month as their export data showed a dramatic increase. Another reason for Euro `bears’ to take profit on their `long term short’ positions. 

€/$ 1.2100 is a very pivotal level, and a close above here on the week could see further upside correction. The Pound also very well supported this week, next resistance at £/$ 1.4800, and technically speaking £/€ 1.2350-1.2400 is now the next potential target.

EUR/USD currently 1.2114. Support 1.2100, resistance 1.2400.

GBP/USD currently 1.4707. Support 1.4500, resistance 1.4800.

GBP/EUR currently 1.2137. Support 1.2100, resistance 1.2400.

Oil $ 75.3    Gold $ 1223   

Stock Markets:

Dow +2.8%%      FTSE +0.9%%      Nikkei +1.7%%

 Todays Ranges:

EUR/USD 1.1959-1.2099    GBP/USD 1.4511-1.4642    GBP/EUR 1.2085-1.2147

The Euro had a better day yesterday against the USD. Fed Chairman Bernanke expects U.S. economic growth for the remainder of this year and 2011 to remain strong. Further `bullish’ economic data from both China and Japan has led to some further USD weakness, as the Euro bounced again in the Far East this morning and this afternoon testing resistance at €/$ 1.2100 level.

The Pound also rallied on rumours of further Prudential unwinding of their recent USD purchases in the failed bid for AIG Asia. Currently testing £/€ 1.2100 levels again and holding above £/$ 1.4600.

EUR/USD currently 1.2090. Support 1.1850, resistance 1.2100.

GBP/USD currently 1.4640. Support 1.4500, resistance 1.4800.

GBP/EUR currently 1.2100. Support 1.2100, resistance 1.2400.

Oil $ 74.30    Gold $ 1231   

Stock Markets:

Dow -0.4%      FTSE +0.7%      Nikkei +1.1%

The Euro recovers as European Governments unveiled a plan to halt Greece’s financial crisis. Euro finance ministers pledged as much as € 45 bio at below market interest rates to help rescue debt-plagued Greece, restoring confidence in the European currency which has weakened nearly 5% against the USD this year. Unity has calmed the markets for the time being, but there remains strong speculation that Greece is not an isolated incident.

The Pound  trading below the € 1.1350 (Fridays support level) at € 1.1305 after the Euro recovery, but back above the resistance of $ 1.5400, as the USD is weaker against a broad range of currencies. UK opinion polls still mixed , but pointing to a hung parliament.

EUR/USD currently 1.3638. Support 1.3600, resistance 1.3900.

GBP/USD currently 1.5421. Support 1.5400, resistance 1.5700.

GBP/EUR currently 1.1305. Support 1.1150, resistance 1.1350.

Oil$ 85.20     Gold $ 1165    

Stock Markets: Dow +0.6%     FTSE +1%     Nikkei +0.4%