Throughout this morning, the market has been subject to a number of EZ, specifically, German data releases. German trade balance fell from 18bn to 13.1bn in May, led by exports falling 2.4% m/m. The Eurozone Sentix survey was then weaker than expected And finally German IP fell from 1% m/m in May. However, Q2 GDP continues to be on track for a 3-4% annualized gain. Most recently, we have witness German Industrial production disappointing at -1.0% vs -0.5% expected and 2% previous month on month, May. ECB President Draghi will be speaking later in his usual quarterly testimony to the European Parliament. Then we wait for UK data releases starting tomorrow and Fed minutes on Thursday which could effect the dollar crosses.
EUR/GBP upside remains in tact
Meanwhile, Karen Jones, Chief Analyst at Commerzbank, said EUR/GBP last week saw an erosion of the range high at 0.8597, and suggests this has not exactly been dynamic, however while the market continues to hold over the 55 day ma at 0.8508 and the range lows at 0.8570, an upside bias is preserved, she said. “0.8597 represented a break point on the topside to the 0.8636 April high and the 0.8793/0.8814 highs seen earlier in the year. Failure at 0.8470, although less favoured, would re-target to the 0.8422 mid-May low and the 2012-13 support line at o.8414.”