Euro consolidates as we await Euro group meeting results

<p>The euro has been consolidating this week as the Eurogroup outcomes seem to be the main focus, with the EU targeting a Greek debt deal […]</p>

The euro has been consolidating this week as the Eurogroup outcomes seem to be the main focus, with the EU targeting a Greek debt deal by next week. With little data out today to have an influence over the direction, all we can do is wait to hear from the meetings today.

Cable had a good rally yesterday to break the mould of the recent downward trend, but was still a way off from Friday’s pre non-farm payrolls high. However, with stronger than expected manufacturing data out yesterday, it seems to be clawing back some ground.

With no data out today from the UK, we look to tomorrow’s quarterly inflation report, with expectations of the CPI to stay low as the price of oil causes lower global deflation pressures. Beyond this, we look to this  returning towards 2%.

The Bank of Japan’s Kuroda gave the important signal yesterday that there was no backlash from the G20 about the depreciation of the Yen, which saw USD/JPY back in a bid tone and trade just below the 120 handle.

 

 

EUR/USD
Supports
  1.1280-1.1240-1.1200  | Resistance 1.1350-1.1390-1.1425

 

 

USD/JPY
Supports  
118.65-117.90-117.41| Resistance 119.90-120.40-121.10

 

 

GBP/USD
Supports
 1.5210-1.5160-1.5130 | Resistance 1.5290-1.5330-1.5370

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