Industrial production climbed 0.2 percent in June

Good Morning,

- The euro stood at $1.3530, ready to test the 1.35 level…?

- Asian shares: Japan's Nikkei -0.06%, Hong Kong's Hang Seng -0.21% (07:07 GMT), Korea's Kospi 0.37%, Australia's ASX 200 0.10% and China's Shanghai -0.57%.

- The euro hit five-month lows against the yen on Thursday and held near a two-year trough on sterling, having weakened broadly overnight. Weakness in the euro helped lift the dollar index to a one-month high of 80.577.

- Disappointing data from Germany in the new quarter and underlying wariness about banking problems in Portugal have kept the euro on the back foot this week.

- The dollar was generally higher after disappointing economic reports in Europe and comments by FED’s Chair Janet Yellen this week that suggested rate rises may come sooner than expected.

- The dollar slightly down against its Canadian peer after the Bank of Canada was neutral on the next move for interest rates.

- New Zealand dollar saw no such relief after tame local inflation data on Wednesday raised questions about whether the Reserve Bank of New Zealand will continue to tighten much more this year. The kiwi last traded at $0.8690, holding not far from a three-week low at $0.8682.

- Nomura on EUR/USD: EUR/USD is now below all major moving averages and the 2013 uptrend, notes Nomura. Such a set-up, according to Nomura, suggests that the pairs is heading for a test and an eventual break of the next key trend/pivot zone at 1.3510 to 1.3480 before a minor bounce. "The 1.3510/3480 zone is anchored by an uptrend from 2012 and pivot lows from the last few months. We expect a break below to usher a continuation of the downtrend from 1.40 in May," Nomura clarifies. S/t, Nomura notes that wave-count indicates that EUR/USD is early in wave-3 and starting a series of extensions. "Momentum is deeply oversold on the hourly chart and this suggests that a 3rd wave of minor degree is wrapping up. With major support at 1.3510, we’ll look to that level for a minor bounce, Strong resistance is now 1.3576," Nomura adds.

- Charles Evans, president of the Federal Reserve Bank of Chicago, joined the chorus of central bank officials acknowledging that the employment picture has improved faster than forecast, but he added he doesn’t want to embrace interest rate increases until he is sure inflation is at 2% and will stay near there.

- Industrial production climbed 0.2 percent in June, capping the strongest quarter in almost four years and indicating manufacturers are providing a bigger spark for the U.S. economy data showed yesterday.

- Foreclosure activity in the United States dropped last month to the lowest level since July 2006, before the housing bubble burst and likely will continue to drop through the first half of next year, an industry group said on Thursday.

- The Conference Board LEI for Australia increased in May after a slight decline in April. With May’s increase, the six-month growth rate in the leading economic index improved to 2.1 percent (about a 4.3 percent annual rate) growth between November 2013 to May 2014, up from 1.4 percent (about a 2.9 percent annual rate) for the previous six months.

- U.S. crude oil extended gains after rising more than $1 the previous day after government data showed a sharp fall in U.S. stocks last week. U.S. crude was up at $101.70 a barrel.

- Watch today: Spanish industry, US jobless claims, US house starts.

Have a nice Day!