EUR/USD, testing critical support level of 1.28

Good Morning,

- EUR/USD, testing critical support level of 1.28. Strong U.S. jobs growth increased the chances of the Federal Reserve rolling back its stimulus in coming months, sending the dollar to a three-year high against a basket of major currencies.

- Asian shares: Japan's Nikkei -1.40%, Hong Kong's Hang Seng -1.66% (07:00 GMT), Korea's Kospi -0.90%, Australia's ASX 200 -0.67% and China's Shanghai -2.44%

- The European Central Bank's decision to break with precedent by declaring it would keep interest rates at record lows for an extended period is fully in line with its mandate, ECB Christian Noyer said. "Forward guidance is fully anchored to our mandate and in line with the two pillars of our strategy,", referring to the ECB's inflation mandate and, for the pillars of the strategy, to real economy and monetary developments.

- ECB cannot solve euro zone crisis: Bundesbank chief.

- Greece, creditors say agreement on reforms could be clinched ahead of Monday's Eurogroup.

- S&P: Outlook on Portugal revised to negative from stable.

- Switzerland’s unemployment rate was unchanged in June, holding at the highest since 2010 and indicating that the economy remains at risk of being dragged down by the recession in the neighboring euro area. The jobless rate, adjusted for seasonal swings, remained at 3.2 percent in June, the same rate as in May.

- IMF's Lagarde Says US Budget Cuts Were 'Absolutely Inappropriate'

- U.S. employers added 195,000 new jobs to their payrolls last month, beating expectations of 165,000. Adding to the positive sentiment, the figures for April and May were revised up by a combined 70,000. The unemployment rate held steady at 7.6 percent.

- Friday's sharp selloff in U.S. Treasuries - with the 10-year yield suffering its biggest one-day rise in nearly two years. Yields on 10-year U.S. Treasuries, turning lower after climbing to a nearly two-year high of 2.755 percent in Asian trade. They jumped 23.3 basis points to 2.736 percent on Friday, driving up U.S. dollar borrowing costs.

- Japan's service sector sentiment index dipped to 53.0 in June, down for the third straight month, in a sign uncertainty over the outlook for the financial markets was weighing on confidence.

- The dollar hit a six-week high of 101.54 yen after gaining 1.2 percent on Friday, its biggest one-day rise in a month.

- China, Switzerland officials sign free trade agreement in Beijing.

- Australia job ads slide for fourth-straight month.

- Watch today: EU confidence, German output, US credit.

Have a nice Week !

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