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Tight ranges ahead of the European banks stress tests results

Published 07/23/2010, 02:56 AM
Updated 07/23/2010, 03:00 AM

Majors moved in narrow ranges during the Asian session as markets participants await the release of the European banks stress tests results and UK’s GDP advanced reading expected to grow by 0.6% in the second quarter from 0.3% previously. The dollar index recorded the lowest of 82.49 and the highest of 82.60. The index now trades around 82.57.

Germany will release today the IFO business climate for the month of July expected to fall to 101.5 from the previous 101.8. while Canada will release today its consumer price index for June expected to fall to 0.0% from the previous 0.3, while the core reading might rise by 1.9% from the previous 1.8%.

The euro traded today between the highest of 1.2913 and the lowest of 1.2885. Now it trades around 1.2889, between 1.2865 and 1.2925. The hourly and four hours momentum indicators show the pair is within an overbought area, but the daily indicators show that pair might continue to rebound from an overbought area. The pair may target the 1.3025 if it breaches the 1.2985, and may target the 1.2725 level if it breaches the 1.2780.

The pound traded today between the highest of 1.5288 and the lowest of 1.5257. Now it trades around 1.5285, between 1.5220 and 1.5310. The hourly and four hours momentum indicators show the pair is within an overbought area, but the daily indicators show that pair might rebound from an oversold area. The pair may target the 1.5390 if it breaches the 1.5355, and may target the 1.5125 level if it breaches the 1.5155.

The dollar against the yen traded today between the highest of 87.21 and the lowest of 86.72. Now it trades around 86.80, between 85.95 and 86.95. The hourly and four hours momentum indicators show the pair is within an overbought area, but the daily indicators show the pair might rebound from an oversold area. The pair may target the 87.70 if it breaches the 87.05, and may target the 85.00 level if it breaches the 85.35.

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