Pounds 2 Yuan

The euro has come under pressure against the greenback and now looks to test the lower bounds of the rising channel. During the overnight trade, German retail sales for the month of June contracted 0.9 percent after climbing a revised 3.0 percent amid economists’ expectations of -0.2 percent.

The Euro pulled back on Friday and slipped to a low of 1.2980 during the overnight trade as investors scaled back their appetite for risk, and the shift in mark sentiment could lead the EUR/USD to retrace the advance from earlier this week as the economic docket is expected to show the world’s largest economy expanding at a slower pace in the second quarter.

Another day of broad based USD weakness looks to be upon us, with the buck still getting hit hard on some dovish comments from Fed Bullard yesterday who expressed concerns of Japan-like deflation and the potential for quantitative easing.

EUR/USD: Selling Opportunity Ahead as Rally Clears 1.30
GBP/USD: Bearish Reversal Hinted at Channel Top
USD/JPY: Remain Long as Prices Threaten Stop-Loss
USD/CAD: Candles Hint Upswing Within Triangle Setup
AUD/USD: Bulls Challenge Resistance Above 0.90
NZD/USD: Positioning Turning Increasingly Bearish

The Japanese Yen outperformed overnight as carry trades followed stocks lower after a round of disappointing economic data. Equity index futures are sharply lower, hinting more of the same is ahead in European hours.

 The rally continues with the market accelerating beyond latest barriers by 1.3100 thus far.

Another session of broad based USD weakness on Thursday, with the buck getting hit hard on some dovish comments from Fed Bullard who expressed concerns of Japan-like deflation and the potential for quantitative easing.

A very interesting week with regard to commodities saw crude oil inventories surge to levels just shy of 10-year highs and gold ETF holdings plummet 500,000 troy ounces. Nevertheless, the near-term outlook for both commodities is highly uncertain.