Asia Session: Passage Of Austerity Propels The Euro Higher

Action Insight	Candlesticks Trades	Markets Summary	Action Bias	Top Movers	Daily Technicals
Calendar	Elliott Wave Trades	Markets Volatility	Pivot Points	Heat Map	Daily Fundamentals

Action Insight Market Overview	Markets Snapshot
Daily Report: Euro Extends Rally, Germany to Discuss French Greek Debt Proposal Euro extends its broad based rally against major currencies today on optimism that Greece's problem is solved in near term after yesterday's parliamentary passage of austerity plan. The near term resolution in the Greece situation also helps boost risk appetite in general and sends Asian equities broadly higher following another day of rebound in DOW overnight. Dollar is defensive against all major currencies for the moment as focus is back to the fragility of US recovery as well as IMF's warning to US for raising the debt ceiling Strength in crude oil, which is now back above 95 level after drawing support from 90, also gives some pressure to the greenback. Full Report Here...
Featured Technical Report
EUR/USD Daily Outlook Daily Pivots: (S1) 1.4357; (P) 1.4403 (R1) 1.4479; More. EUR/USD rises further to as high as 1.4521 so far today and is set to take on near term falling trend line resistance. Intraday bias remains on the upside and break of the trend line will send EUR/USD to 1.4965 resistance next. Note again that EUR/USD is possibly forming a triangle pattern inside converging range of 1.3969/4939. Eventual upside breakup is still in favor with 1.3969 support intact. Break of 1.4695 resistance will be the first signal of up trend resumption for another high above 1.4939. On the downside, below 1.4330 minor support will turn bias neutral. Further break of 1.4102 will turn focus back to 1.3969 support instead. Read more... EURUSD Technical Outlook USDJPY Technical Outlook GBPUSD Technical Outlook USDCHF Technical Outlook USDCAD Technical Outlook AUDUSD Technical Outlook EURJPY Technical Outlook EURGBP Technical Outlook EURCHF Technical Outlook GBPJPY Technical Outlook

Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised 22:45 NZD Building Permits M/M May 2.20% 3.20% -1.60% -1.20% 23:01 GBP GfK Consumer Sentiments Jun -25 -24 -21 23:15 JPY Nomura/JMMA Manufacturing PMI Jun 50.7 51.3 1:00 NZD NBNZ Business Confidence Jun 46.5 38.3 5:00 JPY Housing Starts Y/Y May 6.40% 3.10% 0.30% 7:55 EUR German Unemployment Change Jun -17K -8K 7:55 EUR German Unemployment Rate Jun 7.00% 7.00% 8:00 EUR Eurozone M3 Y/Y May 2.10% 2.00% 9:00 EUR Eurozone CPI Estimate Y/Y Jun 2.80% 2.70% 12:30 USD Initial Jobless Claims 420K 429K 12:30 CAD GDP M/M May -0.10% 0.30% 13:45 USD Chicago PMI Jun 54 56.6 14:30 USD Natural Gas Storage 80B 98B
Forex Trade Ideas
Trade Idea: GBP/USD – Buy at 1.5995 Although the British pound extend this week’s rise from 1.5912 to as high as 1.6118, as cable has retreated in London morning, suggesting consolidation would be seen and pullback to the Kijun-Sen (now at 1.6045) cannot be ruled out, however, reckon 1.5991 (61.8% Fibonacci retracement of 1.5912-1.6118) would limit downside and bring another rise later. A break of said resistance would bring a stronger retracement of recent decline to 1.6129 Read more... Trade Idea: EUR/USD – Buy at 1.4350 Despite yesterday’s brief retreat to 1.4320, as the single currency has risen again after finding renewed buying interest there, suggesting the rise from 1.4073 is still in progress and further gain to 1.4530 and possibly to previous resistance at 1.4552, however, near term overbought condition should limit upside and price should falter below 1.4600 and risk has increased for a retreat later. Read more... Candlesticks Intraday Trade Ideas Update Schedule (GMT): 1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530 Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF Elliott Wave Daily Trade Ideas Update Schedule (GMT): AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1330 - 1400
Suggested Readings
Fundamental Highlights Risk 'On' In Asian Session Approval Of Phase One Austerity Vote Lifts The Euro A Greek 'Tragedy' Avoided (For Now). What's Next?..It's Month End Asia Session: Passage Of Austerity Propels The Euro Higher Daily Financial Market Outlook Greece Austerity Vote Passes, Markets Cheer Technical Highlights Dollar Yen Lower In Tokyo Trading The Daily Forecaster: GBPUSD EURUSD - Very Cautiously Bullish Above 1.4459 Daily Forex Update: EUR/USD

Canadian Dollar Surges on Inflation Jump

Action Insight	Candlesticks Trades	Markets Summary	Action Bias	Top Movers	Daily Technicals
Calendar	Elliott Wave Trades	Markets Volatility	Pivot Points	Heat Map	Daily Fundamentals

Action Insight Market Overview	Markets Snapshot
Mid-Day Report: Euro Takes Profit after Greece Passes Austerity Vote, Canadian Dollar Jumps on CPI Euro retreats mildly after Greek Prime Minister Papandreou finally got parliamentary approval of the five year EUR 78b austerity plan, today by 155 votes within 300 seats. Yield on 2 year Greek bonds dropped further on the news to below 27%, from where it touched 30% in mid June. Greece will face another test tomorrow as the parliament will hold an -article-by-article vote on legislation implementing the austerity plan of EUR 28b as well as a EUR 50b privatization program. Though, it's expected that tomorrow's vote is just a matter of formality. And, that should clear the path for EU and IMF to release the EUR 12b tranche of the EUR 110 bailout package to Greece in July. One point to note that swiss franc indeed has more reaction to the news than Euro itself as worry on the Greece situation eased much. Full Report Here...
Featured Technical Report
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.4272; (P) 1.4334 (R1) 1.4432; More. EUR/USD rises to as high as 1.4447 so far today before retreating mildly. Intraday bias remains on the upside for upper trend line resistance (now at 1.4537) first. Break will target key near term resistance at 1.4695. Note again that EUR/USD is possibly forming a triangle pattern inside converging range of 1.3969/4939. Eventual upside breakup is still in favor as long as 1.3969 support holds. Break of 1.4695 resistance will be the first signal of up trend resumption for another high above 1.4939. On the downside, below 1.4236 will turn bias neutral again. Further break of 1.4102 will turn focus back to 1.3969 support instead. Read more... EURUSD Technical Outlook USDJPY Technical Outlook GBPUSD Technical Outlook USDCHF Technical Outlook USDCAD Technical Outlook AUDUSD Technical Outlook EURJPY Technical Outlook EURGBP Technical Outlook EURCHF Technical Outlook GBPJPY Technical Outlook

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GMT Ccy Events Actual Consensus Previous Revised 23:50 JPY Industrial Production M/M May P 5.70% 5.50% 1.60% 23:50 JPY Industrial Production Y/Y May P -5.90% -6.30% -13.60% 08:30 GBP Mortgage Approvals May 45.9K 46.3K 45.2K 45.45K 08:30 GBP Index of Services 3M/3M May 0.90% 1.30% 0.90% 08:30 GBP M4 Money Supply M/M May 0.10% 0.30% 0.10% 08:30 GBP M4 Money Supply Y/Y May -0.20% -0.90% 09:00 EUR Eurozone Consumer Confidence Jun -9.8 -10 -10 09:00 EUR Eurozone Economic Confidence Jun 105.1 105 105.5 09:00 EUR Eurozone Industrial Confidence Jun 3.2 3.5 3.9 3.8 09:00 EUR Eurozone Services Confidence Jun 9.9 9 9.2 9.3 09:30 CHF KOF Leading Indicator Jun 2.23 2.23 2.3 11:00 CAD CPI M/M May 0.70% 0.30% 0.30% 11:00 CAD CPI Y/Y May 3.70% 3.30% 3.30% 11:00 CAD BoC CPI Core M/M May 0.50% 0.20% 0.20% 11:00 CAD BoC CPI Core Y/Y May 1.80% 1.50% 1.60% 14:00 USD Pending Home Sales M/M May 8.20% 0.80% -11.60% 14:30 USD Crude Oil Inventories -4.4M -1.5M -1.7M
Forex Trade Ideas
Trade Idea: USD/CHF – Sell at 0.8375 As the greenback rebounded after yesterday’s selloff to 0.8276, suggesting consolidation would be seen and recovery to the Ichimoku cloud (now at 0.8349-57) cannot be ruled out, however, reckon this week’s high of 0.8386 would limit upside and bring another decline later. A break of said support at 0.8276 would extend downtrend to 0.8240/42 (50% projection of 0.8947-0.8327 measuring from 0.8552) but loss of near term downward momentum should prevent sharp fall below 0.8200 Read more... Trade Idea: EUR/USD – Buy at 1.4265 As the single currency has maintained a firm undertone after rising to 1.4397 yesterday, adding credence to our near term bullishness for the rebound from 1.4103 to extend further gain to 1.4400 and possibly towards previous resistance at 1.4442, however, break there is needed to retain upside bias for further gain to 1.4458 (61.8% Fibonacci retracement of 1.4696 to 1.4073) but reckon 1.4500 would hold from here. Read more... Candlesticks Intraday Trade Ideas Update Schedule (GMT): 1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530 Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF Elliott Wave Daily Trade Ideas Update Schedule (GMT): AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1330 - 1400
Suggested Readings
Fundamental Highlights Squeeze into Greek Vote Continues Austerity Passes, EUR/USD Eases From 3-Week High Afterwards on "Sell the News" Reaction Canadian Dollar Surges on Inflation Jump Canada's Inflation Rate Jumped in May CAD Surges After Inflation Data Comes in Red Hot Social Breakdown in Greece = Euro Higher Technical Highlights FX Thoughts for the Day EUR/CHF Tests Channel Resistance after Break from Inverted Head and Shoulder EURUSD: Tests The 1.4442 Level, Eyes Further Gains Bullish Breakout to a Declining Wedge Observed in the GBP/JPY

Your forexlive

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• Euro Zone Economic sentiment falls to 105.1 in June from 105.5 in May
• Stark rejects idea that banks could exchange Greek debt for paper guaranteed by EU states
• UK May Mortgage Approvals See Less Than Expected Rise
• UK DATA: May Mortgage Approvals See Less Than Rise…
• UK mortgage approvals 45,940 in June
• ECB’s Stark: Not against private sector involvement in Greek deal if voluntary
• Central bank steps in and buys EUR/USD
• Greece In Final Countdown To Critical Austerity Vote
• EUR/CHF firms in early European trade
• Rumour Bundesbank has been buying EUR/GBP
• Nomura Asset eyes increasing toushin investment
• EUR/GBP ticks higher, sell orders noted
• AUD/USD firmer in early European trade
• Austerity engulfs the UK high street
• British consumers starting to ration, says Asda boss
• ECB Provopoulos:Failure To Pass Measures Wld Be “Suicide”-FT
• FRANCE DATA: Final 1Q GDP growth revised down to q/q.
• French Q1 GDP revised down to +0.9% q/q
• Japan Average Gasoline Price Posts 2nd Weekly Rise; +8.9% Y/Y
• EUR/USD becalmed in Asia

Euro Zone Economic sentiment falls to 105.1 in June from 105.5 in May Posted: Reuters poll 105.0 June industrial sentiment 3.2 vs 3.8 in May, services sentiment 9.9 in June vs 9.3 in May June consumer sentiment -9.8 vs rev -9.9 in May June consumer inflation expectations 24.7 vs 27.4 in May, producer price expectations 16.0 vs 20.3 in May June business climate 0.92 (reuters poll 0.90) vs rev [...]

Stark rejects idea that banks could exchange Greek debt for paper guaranteed by EU states Posted: A Brady bond style solution would be violation of EU no bail-out clause

UK May Mortgage Approvals See Less Than Expected Rise Posted: –BOE: UK May House Purchase Approvals 45,940 Vs 45,447 Apr –BOE: UK May Net Mortgage Lending stg1.098bn Vs stg1.047bn Apr –BOE: May M4 Ex-IOFCs 1.7% 4q/12m Annualised –BOE: May M4 Ex-IOFCs 0.3% m/m; 1.0% 1q/3m Annualised –BOE: UK May Net Consumer Credit stg173mln; Vs stg539mln Apr London (MNI) – Mortgage approvals nudged higher in May [...]

UK DATA: May Mortgage Approvals See Less Than Rise… Posted: UK DATA: May Mortgage Approvals See Less Than Expected Rise –BOE: UK May House Purchase Approvals 45,940 Vs 45,447 Apr –BOE: UK May Net Mortgage Lending stg1.098bn Vs stg1.047bn Apr –BOE: May M4 Ex-IOFCs 1.7% 4q/12m Annualised –BOE: May M4 Ex-IOFCs 0.3% m/m; 1.0% 1q/3m Annualised –BOE: UK May Net Consumer Credit stg173mln; Vs stg539mln [...]

UK mortgage approvals 45,940 in June Posted: Versus 45,447 in May, very slightly below median forecast of 46,100

ECB’s Stark: Not against private sector involvement in Greek deal if voluntary Posted: Oh bugger off, you’re boring me…… Greece cannot expect to always be supported by others (guess he won’t be going to Kos for his holidays) Greek economy would collapse if there was debt restructuring

Central bank steps in and buys EUR/USD Posted: On the dip back below 1.4400. We’re back up at 1.4405 in increasingly erratic trading conditions. I hate to think how thin this market is getting. Probably good idea to keep positions conservative.

Greece In Final Countdown To Critical Austerity Vote Posted: ATHENS (MNI) – Greece is now in the final hours before a critical vote on austerity and privatization measures that could determine whether Athens will be able to honor repayment obligations falling due the middle of next month. The Greek Parliament will vote this afternoon on a package of measures that includes E28 billion in [...]

EUR/CHF firms in early European trade Posted: Presently up at 1.1970 from around 1.1930 when I arrived. Sources note real money has been buying this morning. This cross buying (together with aforementioned EUR/GBP buying) will be helping underpin EUR/USD which has edged over 1.4400. We’re at 1.4405 having been as high as 1.4417 as the market continues to discount a Greek austerity yes vote.

Rumour Bundesbank has been buying EUR/GBP Posted: Well it is nearly months end. Cross sits at .8992.

Nomura Asset eyes increasing toushin investment Posted: Reuters article.

EUR/GBP ticks higher, sell orders noted Posted: EUR/GBP up at .8993 from around 8978 when I sat down. Talk now, not surprisingly, of sell orders clustered up around the psychological .9000 mark. Will they be enough to hold back the tide? I’m not too sure they will be. Time, as always, will tell.

AUD/USD firmer in early European trade Posted: Presently at 1.0575, up from around 1.0545 when I parked my bum. Talk of fixing demand for the AUD/JPY cross today (possibly linked to large toushin issues over today/tomorrow) will be lending some underpinning. Slightly firmer EUR/USD will also obviously be impacting too.

Austerity engulfs the UK high street Posted: C’mon, who can afford Thornton’s chocolates?

British consumers starting to ration, says Asda boss Posted: Happy Dayz. The shit is really starting to hit the fan.

ECB Provopoulos:Failure To Pass Measures Wld Be “Suicide”-FT Posted: FRANKFURT (MNI) – European Central Bank Governing Council member George Provopoulos said it would be “suicide” if the Greek parliament fails to pass sweeping austerity measures on Wednesday, the Financial Times reported. “For parliament to vote against this package would be a crime – the country would be voting for its suicide,” the Bank of [...]

FRANCE DATA: Final 1Q GDP growth revised down to q/q. Posted: FRANCE DATA: Final 1Q GDP growth revised down to +0.9% q/q (+1.0%) – 1Q Private consumption revised to +0.4% q/q (+0.6%) – 1Q Capital investment revised to +1.2% q/q (+1.1%) – For more information, please see MNI Mainwire

French Q1 GDP revised down to +0.9% q/q Posted: From previous 1.0%. Q4 2010 GDP revised down to +0.3% from previous +0.4%. 2010 full year GDP revised down to +1.4% from previous +1.5%.

Japan Average Gasoline Price Posts 2nd Weekly Rise; +8.9% Y/Y Posted: TOKYO (MNI) – The average price of regular gasoline in Japan this week jumped to Y148.7 ($1.83) per liter, or $6.95 per gallon, from Y147.8 last week, a second straight weekly rise and a sharp increase from a year earlier, data released by the Oil Information Center showed on Wednesday. On April 25, the national [...]

EUR/USD becalmed in Asia Posted: EUR/USD sits at 1.4370, effectively where it closed out Tuesday in North America, the market in Asia effectively on hold ahead of todays Greek austerity vote. Euro zone data due today: 05:30 GMT: French GDP Q1 +1.0% q/q, +2.2% y/y 09:00 GMT: Euro zone business climate indicator for June expected 0.90 from 0.99; consumer confidence [...]