Can the recent trend extend?

<p>A quiet start to the week in prospect after last week’s events in the US led to open ended QE taking the dollar lower with […]</p>

A quiet start to the week in prospect after last week’s events in the US led to open ended QE taking the dollar lower with the dollar index closing below the 52-week moving average, suggesting more pressure on the greenback in the near term.

With major policy meetings now out of the way, the focus will be on Spain and a possible request for financial aid. In the US, manufacturing and housing will be the main focus. Key data include the Empire State Manufacturing report today followed by housing starts, building permits and existing home sales on Wednesday. The US PMI and the Philly Fed survey are due on Thursday. It will be a relatively data void week in Europe with the German and French PMI data on Thursday gathering the most attention. The German ZEW survey and UK retail sales will be released tomorrow followed by the Bank Of England minutes on Wednesday. The Dutch 2013 budget is due for submission to the new parliament for approval tomorrow. In Asia, all eyes will be on HSBC’s flash manufacturing PMI for China on Thursday.

 


EUR/USD

Supports 1.3100-1.3070-1.3000 | Resistance 1.3140-1.3180-1.3245


USD/JPY

Supports 78.15-77.85-77.65 | Resistance 78.50-78.85-79.00


GBP/USD

Supports 1.6200-1.6175-1.6130 | Resistance 1.6250-1.6305-1.6380

 

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