The euro trade calm to 1.3670 level

Good Morning,

- The euro trade calm to 1.3670 level, after hit a six-week high of $1.37… there were some worries among euro bulls that the ECB might try to talk down the currency on Thursday after its policy meeting.

- Asian stocks hit a three-year peak after a round of upbeat global economic data whetted risk appetites and helped Wall Street taste new all-time highs. Japan's Nikkei 0.29%, Hong Kong's Hang Seng 1.28% (07:16 GMT), Korea's Kospi 0.81%, Australia's ASX 200 1.40% and China's Shanghai 0.44%.

- Spain’s registered unemployment in June has decreased by 122,684 people from the previous month. In seasonally adjusted terms, unemployment decreased by 16,113 people, compared to an average increase of over 22,000 people in the last 5 years. It is also the biggest drop in the seasonally adjusted unemployment since June 2001.

- The dollar index .DXY drifted up to 79.811 from a two-month trough of 79.740.

- Credit Suisse on EUR/USD: CS notes that it has extended its recovery up through price, 200- day average and 38.2% retracement resistance at 1.3670/90 to set a base. "Although the 55-day average at 1.3699 is capping for now, we look for support at 1.3640 to ideally hold for a break above 1.3640 to target half the May/June fall at 1.3748, potentially the "neckline" to the April top at 1.3775. With the 61.8% retracement not far above at 1.3806, we would look for a fresh top here," CB projects. "Below 1.3640 aims back at 1.3576/64. Removal of this level should then see a move towards 1.3513/03, with scope for more important level at 1.3477/76 – trend- line support and the early year low," CS adds. In line with this view, CS flips into a EUR/USD long with a stop at 1.3640, and a target at 1.3775.

- UK house prices recorded their fourteenth successive monthly increase in June, rising by 1 %. As a result, the annual pace of price growth picked up to 11.8% from 11.1% the previous month. “In seasonally adjusted terms house prices reached their 2007 peak in Q2 , just as UK economic output is likely to have surpassed the high water mark reached before the financial crisis. “

- The British pound held firm near six-year highs against the dollar, following an upbeat manufacturing survey. Sterling also held near a 1-1/2-year high against the euro, at 79.70 level.

- U.S. auto sales reach highest level in more than eight years data showed yesterday.

- Australia's international trade balance has spent a second consecutive month in the red following a fall in mining exports. The deficit was $1.9 billion in May, compared to a $780 million deficit in April.

- The Australian dollar hovered near an eight-month peak early on Wednesday, having been swept higher by a short squeeze.

- Later today, Fed chair Janet Yellen will appear at an event with International Monetary Fund Director Christine Lagarde and dealers generally assume she will stick to her recent dovish script.

Have a nice Day!