By Easy-Forex - The Dollar initially strengthened then lost ground against the major currencies in the overnight session as US CPI came out stronger than...

... expected.

Core CPI was at 0.3% for the month of May compared to 0.2% estimates, headline CPI came in right on expectation i.e. 0.4%. The Federal Reserve Beige book also noted that higher energy costs were adding to increases in manufacturing and retail. In other markets, the Dow Jones jumped 91pts while the NASDAQ rose by 13pts. Crude oil rose by US58c to US$69.14 a barrel as a response to a larger than expected fall in US inventories. Looking ahead, initial jobless claims, New York Fed survey, and the Philly Fed survey are due out today.

The Euro traded in a range of 1.2534 to 1.2648, before closing at 1.2596 in the New York session. Looking ahead, core and headline CPI are due out today.

The Japanese yen traded in a range of 114.48 to 115.42 versus the dollar, before closing at 115.05 in the New York session. On the data front, the Japanese Tertiary index came in at 1.3% compared to a 1.0% estimate.

The Sterling traded in a range of 1.8335 to 1.8500, before closing at 1.8439 in the New York session. On the data front, UK employment data came in weaker than expected at 5.3% with forecasters expecting 5.2%. Looking ahead, retail sales are due out today.

The Aussie traded in a range of 0.7344 to 0.7407, before closing at 0.7360 in the New York session. On the data front, consumer inflation expectations eased to 4.0% from 4.2% the previous month.

Gold fell by US30c to $566.50 an ounce with base metals in general posting modest gains.



By Easy-Forex
Euro 1.2615
Initial support at 1.2530 (June 13 low) followed by 1.2403 (50% retracement of the 1.1951 – 1.2980 rally). Initial resistance is now located at 1.2653 (June 12 high) followed by 1.2686 (Jun 9 high).



Yen 114.90
Initial support is located at 114.25 (June 13 low) followed by 113.56 (Jun 9 low). Initial resistance is now at 115.45 (June 13 high) followed by 115.98 (April 24 high and former gap low).



Pound – 1.8455
Initial support at 1.8316 (June 13 corrective low) followed by 1.8206 (May 2 low). Initial resistance is now at 1.85 (Jun 14 high) followed by 1.8579 (Jun 8 high).



Aussie – 0.7370
Initial support at 0.7345 (June 14 low) followed by 0.7313 (61.8% retracement of 0.7015 to 0.7795 advance). Initial resistance is now at 0.7505 (June 9 corrective high) followed by 0.7547 (June 5 corrective high).