- Spain sells EUR 6 bln in 10 year bonds without difficulty
- ISM non-manufacturing index falls to 53.8 in June from 55.4; weaker than expected
- Global service-sector PMI falls to 54.9 in June from 56.3 in May
- Greek central banker Provopoulous: On target for deficit cuts; no restructuring
- EU praises UK deficit plan
- Ag Bank IPO prices; largest in history
- S&P 500 closes up 0.5%; well below session highs; US 10-yr note closes at 2.94%, up 1.5 bp but below 2.99% highs
- Gold tumbles to 6 week low at 1190; Oil loses early gains, ends +$0.10 to 73.25.
EUR/USD just wanted to go higher. Moments after the softer than expected service sector PMI, we broke through resistance at 1.2605/10 and rallied as high as 1.2663 before relenting.
Selling by Asian and Middle Eastern accounts preceded the data and kept a lid on EUR/USD in the 1.2600 area early in the day. Important resistance at the 1.2670/75 level was nearly tested before US equities lost their bid and took some steam out of the Euro rally. Failing to break 1.2675 prompted profit-taking which saw EUR/USD dip as low as 1.2613 late in the New York afternoon. US real money accounts were buyers on dips in the afternoon.
Cable stalled at Friday’s 1.5230 highs and sold off quite significantly on profit-taking. 1.5131 was the afternoon low. 1.5080 is next support for the pound.
USD/JPY eased as stocks lost steam in New York afternoon trade, slipping back as far as 87.35 before steadying. US and Japanese real money was rumored buying on dips.
Commodity currencies rallied strongly in early US trade as did most risk trades, only to ease in the afternoon. AUD/USD reached as high as 0.8559. 0.8480 was the pullback low. Support lies down at 0.8470 but stops are lined up on a break below that level.
USD/CAD fell to 1.0482 and ends the day at 1.0555.