EUR/USD begun the European session at $1.1070, towards the upper end of the overnight trading range ($1.1063-1.1081). USD strength pressed the pair lower towards to dip very briefly under $1.1050. Some shocking sentiment data from the German ZEW and overall Eurozone ZEW read, then sent the pair back down to $1.1060 having spiked to $1.1077 just ahead of the releases. Eur/Usd came under fresh selling pressure into the US open, falling to a $1.1024 intraday low and closer still to the rough $1.1000 range bottom. More encouraging US data saw the Usd resume its upwards path, with Eur/Usd shunted down to lows of $1.1000 in afternoon trade. Beyond today’s low, we look for support at the Jun 27 low of $1.0971. On the upside, yesterday’s high of $1.1084 may offer some support ahead of last Thursday’s high of $1.1165 and the July 5 high of $1.1185.
Cable begun the European session at $1.3228, towards the lower end of the overnight trading range ($1.3205-1.3276). The Usd took an early turn higher against Gbp, with the rate moving back through $1.3200 to a $1.3172 intraday low. The UK June CPI report came in firmer than forecast at 0.5% y/y and Gbp/Usd inched away from $1.3172 lows. However, Cable’s negative morning then continued with the afternoon’s Usd resurgence, sending the pair down to $1.3106 before falling below $1.3100 to lows of $1.3083. Support comes in at today’s low of $1.3083 ahead of the July 6 31-year low at $1.2798. On the upside, yesterday’s high of $1.3315 may offer some support ahead of Friday’s $1.3481 and the June 26th high of $1.3566.
USD/JPY started the European session at ¥106.10, but continued to struggle through ¥106.00 having stalled overnight ahead of the ¥106.32 high seen last week. Heading into the US open, the pair threatened higher before eventually scaling the recent stumbling blocks up at ¥106.26/32, and venturing to a three and a half week peak up at ¥106.53. However there was no real follow through buying, as it eases back to ¥106.30. Last ¥105.95. Above today’s high, we look for resistance at the June 24 high of ¥106.84 followed ¥107.26. On the downside, yesterday’s low of ¥105.16 is in focus ahead of Friday’s low of ¥104.64 and Wednesday’s low of ¥103.91.
GBP/EUR begun the European session around €1.1941. Europe pushed prices lower, with minimal reaction to the firmer than expected UK inflation release. Gbp’s poor session continued into the US morning, with the pair moving through €1.1900 before a slight bounce sent the pair back to the mid-€1.1900’s. However the move was short lived as the pair tumbled back through €1.1900 to lows of €1.1875. Support comes in at Thursday’s low of €1.1808 while on the upside, today’s high of €1.1988 may offer some resistance ahead of €1.2018 followed by €1.2104 and the June 29 high of €1.2186.