The Euro continued to slide against the dollar as commodities fell and economic data weakened. May Industrial Orders were down 3.5%. Looking ahead for heavy data day with July German PMI services seen at 51.5 while Euro zone’s is seen at 48.8. Euro zone’s PMI manufacturing is forecast at 48.7. The July German IFO index is keenly anticipated with the market forecasting 100. Sterling received a major boost yesterday gaining against all the major currencies as the July MPC meeting minutes came in a surprising 7-1-1. MPC member Beasley voted for a rate hike on concerns that medium inflation was the most important threat to the UK economy. Looking ahead for June Retail Sales are seen at -2.5% down from May’s surprising 3.5% rise.
Tech outlook:
EURO chart pattern shows a doji,remains indecisive on the trend. With the trading range expected between 1.5640 -1.5730 levels for the day . currency has its support at 1.5620 levels and holds resistance at 1.5750 levels for the day. Currency is trading well below the moving averages and and is expected to test the Lower Band levels in Bollinger analysis .
GBP is expected to trade in the range of 1.9910-2.0023.With good support seen at 1.9890 levels and resistance for the currency is seen at 2.003.Chart pattern hints towards a small downside correction for the day. Currency is trading below the moving average giving bearish crossovers for the day.
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