July 4, 2012
Due to the lack of market-moving events, the euro was unable to make significant strides against the safe haven dollar yesterday. The euro simply ranged the entire day, finding support at the previous day low at 1.2568 and resistance at the 1.2600 major psychological level. By the end of the day, the euro was only 22 pips higher versus the dollar.
Euro zone’s producer price index was the only report released yesterday. It came in at -0.5%, much worse than the 0.2% decline initially expected.
Today will probably turn out more exciting as a bunch of medium-tier reports are on deck. At 8:00 am GMT, euro zone’s final services PMI will be released. It is expected to print a reading of 46.8, just like the reading we saw last month. Shortly after, at 9:00 am GMT, euro zone’s retail sales report will be published. The forecast is a 0.2% increase, which is opposite the 1.0% decline seen in the previous report.
"The only cable I watch is the pound baby."