The Euro traded in a tight range as markets wait for the interest rate decision during the week with the US on Tuesday and ECB on Thursday. Small gains on the back of higher than expected Euro zone PPI in June of 0.9% were relinquished by large falls in Crude Oil. Looking ahead for July Euro zone PMI service’s which is forecast at 48.3. Also June Retail Sales with expectation of -0.6% . Sterling was the big loser of the day as economic concerns mounted and expectations of rates cuts intensified. Construction PMI in July dropped again to 36.7. . Looking ahead for July PMI services with forecast at 46.7 and June Manufacturing Production expected flat 0.0%
Tech view:
EURO is expected to be on a bearish note. With the trading range expected between 1.5470-1.5620.With good support seen at 1.5450 levels and key resistance for the currency is seen at 1.5630 levels. Currency is seen trading below the moving averages and is expected to test the lower Band level .Parabolic is also supporting the bear note.
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