USD Up, Wires Watched For Greek Tape Bombs

KEY DATA RELEASES TODAY (BST) :

09:30 GBP Public Sector Net Borrowing 6.6B v 6.2B
09:30 GBP Retail Sales m/m 0.4% v 0.7%
13:30 USD Unemployment Claims 288K v 294K
14:45 USD Flash Manufacturing PMI 55.6 v 55.3
15:00 USD New Home Sales 514K v 539K

OVERNIGHT:

EURUSD remained relatively heavy over the course of the Asian session when factoring in the move by SNB yesterday to expand number of groups subject to negative rates and the NZD weakness on back of RBNZ McDermott’s speech which have lead to general correlated USD strength against the EUR .The key 1.0640/20 support level continues to remain in place and any breach will open up confirmation for further downside momentum with 1.0740 and 1.0820 providing notable resistance levels for now. Favour bearish views but remain nimble for any Greek headlines hitting the wires.

The trek higher continues in USDJPY, with the move by the SNB and the spike in yields post US ­data helping the cause… It’s still a low ­vol currency pair, so not anticipating any sharp moves in the pair… anticipate selling interest to reside above 120, ahead of the daily cloud top of 120.37. Bulls don’t want to see the pair print below yesterday’s low of 119.34.

It was a good day for the GBP yesterday, as a hawkish tilt in the BOE MPC minutes sent the currency through some resistance levels (in the crosses most especially). Cable prints a high of 1.5080 last night, and a close above 1.5000 should continue to encourage a GBP bullish view. Retail sales data today, which can help push further the trend of good domestic data. While being well aware of election risks, market is acting as if it is well­ positioned for these uncertainties.

PRICE ACTION OVERVIEW:

EUR: 1.0620 key support for further corrective upside failure here suggest downside trend resumption targeting year to date lows
GBP: 1.5130/60 key resistance for trend resumption
JPY: While 118.30 contains downside target 121.00 en route to retest of year to date highs, only below 118.30 concerns bullish view
CAD: 123/24.50 former support now becomes key resistance
AUD: While .7860/80 contains upside anticipate third test of key .7550 failure here opens the bearish target of .72, above .7880 alleviates downside pressure

KEY TRADES: