Euro and Pound had a slight rebound-Aug 22.

The Euro had an initial foray into the 1.48’s early in the European session which was sharply repelled by mixed European data. August German Manufacturing PMI slipped below 50 to 49.9 from 50.9 in July. German Services PMI also slipped to 50.6 from 53.1. Euro zone PMI data surprised to the topside though, ticking higher to 47.5 in August vs. 47.4 in July. The surge in Oil provided the stimulus for the second 1.48 attempt which proved successful with spot settling just below 1.4900.Looking ahead for Euro zone June Current account forecasted at -2Billion and June Industrial Orders are expected at -1.1%. Japanese Yen broke through 109.50 as stock losses mounted and the Dollar weakened. Downside Momentum into the European Session saw support at 109 and 108.50 broken before some heavy cross buying finally brought the decent to a halt. The Sterling had a volatile trading day but ended substantially higher on USD weakness but UK data was mixed. July Retails Sales bounced back from a -3.9% fall last month to a surprisingly strong +0.8%. Initial Pound gains were tempered though as Preliminary Business Investment look set for a -1.9% drop Q/Q. Looking Ahead for Q2 GDP is forecast at 0.1% Q/Q, 1.5% Y/Y.
The Euro had an initial foray into the 1.48’s early in the European session which was sharply repelled by mixed European data. August German Manufacturing PMI slipped below 50 to 49.9 from 50.9 in July. German Services PMI also slipped to 50.6 from 53.1. Euro zone PMI data surprised to the topside though, ticking higher to 47.5 in August vs. 47.4 in July. The surge in Oil provided the stimulus for the second 1.48 attempt which proved successful with spot settling just below 1.4900.Looking ahead for Euro zone June Current account forecasted at -2Billion and June Industrial Orders are expected at -1.1%. The Sterling had a volatile trading day but ended substantially higher on USD weakness but UK data was mixed. July Retails Sales bounced back from a -3.9% fall last month to a surprisingly strong +0.8%. Initial Pound gains were tempered though as Preliminary Business Investment look set for a -1.9% drop Q/Q. Looking Ahead for Q2 GDP is forecast at 0.1% Q/Q, 1.5% Y/Y.

Tech Outlook:

EURO R1: 1.4980 S1: 1.4820
R2: 1.5030 S2:1.4790
Euro is expected to give a bullish move for the day. Trading range for the day is expected between 1.4840-1.4960 levels for the day. Stochastic is hinting for the upward movement of the currency for the day. Momentum also supports the upward correction for the day.

GBP R1: 1.8856 S1: 1. 8710
R2: 1.8880 S2: 1. 8690
chart pattern shows the currency to be on mixed note for the day. Trading range is expected between 1.8720-1.8840 levels for the day. Momentum indicates the currency to be on bull note. Currency is seen trading on the moving averages only a break above it can confirm the bull trend.