Euro Finds Support. Pound Earns a Reprieve

By: Mike Paterson

Forex trading headlines for the European morning session UK markit mftg PMI june 52.5 vs 51.5 exp 51.5 prev revised up from 51.3 UK BBA mortgage approvals may 58,242 vs 55,050 exp 54,312 prev revised up from 53,712 Eurozone unemployment may 12.1% vs 12.3 exp 12.0% prev revised down from 12.2% Eurozone flash CPI june +1.6% as exp  +1.4% prev Italian markit mftg PMI june 49.1 vs 47.8 exp 47.3 prev French markit mftg PMI june 48.4 vs 48.3 exp 48.3 prev German markit mftg PMI june 48.6 vs 48.3 exp 48.3 prev Eurozone markit mftg PMI june 48.8 vs 48.7 exp 48.7 prev Nikkei closes up 1.28% at 13,852.50 Swiss SVME PMI june 51.9 vs 51.8 exp  52.2 prev Italian unemployment 12.2% vs 12.1% exp 12.0% prev Merkel to speak with Obama over bugging allegations It's been mostly a quiet start to the week with the main features being a steady grind higher for the euro after positive data, while the pound looked shaky again before earning a get-out- of- jail card with stronger than expected mftg PMI. USDJPY moved higher earlier as the Nikkei closed firmer but has shied away from strong sell interest/resistance ahead of 100.00. EURJPY found good buying interest to take out offers at 130.00 but similarly found the next strong line at 130.20 one step too far for the moment at least. The fimer euro theme was widespread with EURUSD grinding its way up to 1.3060 again and EURGBP having another assault on the strong resistance arear at 0.8590-0.8600 only to retreat sharply to 0.8554 after the UK data release. EURAUD has once again been a lively play with plenty of movement in a 1.4150-1.4250 range. EURUSD sell interest between 1,3060-80 and higher again at 1.3100 has so far capped the rally in a lack-lustre session overall. Cable struggled to keep pace with EURUSD early on and found itself kicked down to 1.5185 in a rush from 1.5217 only to be bailed out moments later after the data and we saw a quick rally to 1.5247 before falling back once more. AUDUSD's strong rally from Asian lows of 0.9111 ran out of steam at 0.9207 ahead of good sell interest starting at 0.9220 and was kicked back lower to 0.9170 exacerbated by EURAUD buying. All in all a cagey start to a week that will undoubtedly be kicking off again before too long.