London Olympic Games may give UK economy a confidence boost, says BoE Governor

<p>  EUR/USD Range: 1.2200-1.2450 Support: 1.2225 Resistance: 1.2325/1.2330 European Central Bank (ECB) bond purchases will not solve Spain and Italy’s difficulties in maintaining investor confidence, […]</p>

EUR USD

EUR/USD

Range: 1.2200-1.2450
Support: 1.2225
Resistance: 1.2325/1.2330

European Central Bank (ECB) bond purchases will not solve Spain and Italy’s difficulties in maintaining investor confidence, ECB Governing Council member Luc Coene said in an interview published yesterday. No significant data releases are scheduled from Europe today. All eyes are on tomorrow’s eurozone quarterly GDP release at 10am. We will also receive inflationary and economic sentiment data from France, Germany and the eurozone as a whole.

 
GBP USD

GBP/USD

Range: 1.5500 – 1.5775
Support: 1.5620/1.5770
Resistance: 1.5720

Cable traded a 20-pip range overnight, printing a high and low of 1.5680 and 1.5660 respectively. Writing for the Mail on Sunday, BoE Governor Mervyn King said the impact on confidence from the Olympic Games may give the economy a boost, but ultimately the Games cannot alter the underlying economic situation the UK faces. This week we will see the release of July CPI Inflation figures on Tuesday, and MPC minutes on Wednesday. Analysts are expecting a unanimous vote to keep the bank rate unchanged.

 

 

USD JPY

USD/JPY

Range: 77.30-79.15
Support: 77.90
Resistance: 78.80

Overnight weak Japanese GDP data prompted some yen selling, with USD/JPY printing a high of 78.35 following the data release. Japan’s second quarter annualised GDP cools down to +1.4%, versus the median estimate of +2.5%. The first quarter was revised upward to +5.5%, from 4.7%.

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