Currency markets were calm on Monday

Good Morning,

- Currency markets were calm on Monday, with the euro having stuck to a tight range around $1.36 level for over a week now.

- Asian shares rose on Monday as investors put aside concerns about euro zone banks.

- Markets had calmed on Friday as investors decided that losses associated with the founding family of Banco Espirito Santo were unlikely to disrupt Portugal's financial system.

- Many major U.S. banks report earnings this week, along with some big tech names including Intel, Yahoo, eBay and Google.

- Credit Suisse on EUR/USD: With a “bearish engulfing” candlestick in place, the immediate risk leans to the downside. EURUSD has seen a rejection from the “neckline” to the recent top at 1.3640/50, forming a “bearish engulfing” candlestick. We look for a test of 1.3589/88 initially, followed by last week’s low at 1.3575. Removal of the latter should then trigger a test of "neckline" support at 1.3513/03, a break of which would aim at more important levels at 1.3477, the early year low. Below this latter level remains needed to confirm the completion of the expected large bear "wedge". Resistance shows at 1.3638 initially, then 1.3652/53, followed by 1.3665/77, above which is needed for a move back to 1.3701.

- Credit Suisse on GBPUSD: Remains above its rising 13-day average, leaving the trend higher for 1.7330/32. Continues to hold above price, trend line and rising 13-day average support at 1.7104/1.7085. We look for this to ideally hold to see a move back up to test the 1.7181 recent high. Above here would turn the trend higher again for potential trend resistance at 1.7250 next, and eventually on to our long-held medium-term target at 1.7330/32 – the 50% retracement of the 2007/2009 collapse. We would look for this to then cap at first, for a correction lower. Immediate support shows at 1.7105/03. Failure to hold 1.7085 can see a minor top to target 1.7042 then 1.7008/1.6998, which we look to then ideally hold.

- China's economy is in danger of missing its growth target as risk balloons in the country's all-important real estate sector, according to a CNNMoney survey of economists. Gross domestic product is forecast to have expanded by 7.4% in the second quarter, compared to the same period last year, according to the median estimate of 12 economists. That figure matches GDP growth in the first three months of the year. The economists expect full-year expansion to slow to 7.3% -- below the government's official 7.5% target. Economic growth is forecast to slide further to 7% in 2015.

- FED’s Janet Yellen's two-day appearance in the U.S. Congress from Tuesday will dominate global markets, which want to know how long rates might stay near zero once the central bank ends its asset-buying programme.

- ECB’s President Mario Draghi will speak at the EU Parliament later on Monday while the EU 28 Summit on Wednesday will see Jean Claude Juncker confirmed as EC President.

- Goldman stays Gold bear as bullish wagers increase. The net-long position in gold rose 5.4 percent to 144,272 futures and options contracts in the week to July 8, according to U.S. Commodity Futures Trading Commission data. That’s the highest since November 2012. Short holdings have fallen for five straight weeks.