Stronger than expected GDP data from Germany

EUR/USD

Range: 1.2250 – 1.2500
Support: 1.2275
Resistance: 1.2375-1.2380

Euro was in demand during the New York and Asian sessions although ranges remain broadly intact. It seemed more a case of no bad news, than any good news. Although the euro’s strength will be tested today with various releases due from Europe throughout the morning. German GDP data exceeded forecasts at 0.3%, down 0.2% from the previous quarter. Later on we’ll be expecting inflationary data from the UK, as well as economic sentiment and industrial production from Europe, both of which could prove to be fairly influential figures. Analysts are expecting a contraction of 0.2% quarter-on-quarter in eurozone GDP as well as a fall in industrial production of 0.5% in June.

GBP/USD

Range: 1.5550 – 1.5770
Support: 1.5600
Resistance: 1.5725

Rallies in cable yesterday were met with decent supply restricting the pair to a 60-pip range. Even so, the dips remained shallow so we may see the pair test the highs once again today. Inflation data will be released at 9.30am and the expectation is for CPI to remain unchanged; a marginal increase in RPI to 2.9% from 2.8%.

USD/JPY

Range: 77.65 – 79.90
Support: 77.90
Resistance: 78.80

Bank of Japan’s Monetary Policy Meeting minutes were released last night, showing policy markets are considering steps to boost the economy. The focus remained on eurozone woes, and the concern for slowing overseas growth. According to the minutes, “members shared the view that uncertainty over the global economy remains high.” In conclusion, the BoJ kept monetary policy steady. Providing that domestic demand continues to offset weak external demand, the Japanese economy is headed for a slow but steady recovery.