Ahead of tomorrows UK GDP data release, Sterling traded either side of €1.1800 during the Asian session as European economic data disappoints again. Key resistance is now seen at €1.1850 as €1.2000 is becoming increasingly realistic. Against the stronger Dollar, key support is seen at $1.3770.
USD The Dollar’s uptrend remains intact as treasury yields hold onto their recent gains. The Dow Jones and S&P indexes set new all-time trading highs during Tuesday’s session as both index rallies were seen as being responsive to the $1 trillion infrastructure bill. This was passed by the Senate on a bipartisan basis and the bill must now pass the House of Representatives. Investors await the latest US CPI readings for July at 1.30pm.
EUR Weaker than expected ZEW economic surveys for Germany and Eurozone done little to help the Euro’s cause when released on Tuesday. The German consumer price index for July came in earlier today as per consensus. The Euro is still under pressure however at 5-month lows and holding just above $1.1700 ahead of the US inflation data this p.m. The broader based consumer price index for the Eurozone is released at 9.00am.