Forex Charts

FX Daily

After the significant easing steps in June we expect ECB to largely repeat themessage from the June meeting at today’s meeting.

GBPUSD – wave-v of 5 targets confluence zone at 1.7230/40

Sterling consolidated as expected from the 1.7050 target; the a-b-c consolidation completed wave-4 and

USDJPY – wave-E of triangle satisfied but awaiting clarity; 102.36/80 key

The bear flag we highlighted yesterday did realize a breakdown but it was short-lived. Our 101 target was not met although prices did fall to

USDJPY – bear flag suggests wave-c of E still not complete; target 101

Prices have not yet reached the ideal 101 level where wave-a = c (within wave-E).

USDCAD – small bear triangle ahead of 1.0625 symmetry target

Prices are progressing nicely to the posited 1.0625 target.

FX Daily

A relatively light data calendar. The most interesting release is the ADP privateemployment report in the US that will

FX Daily

While ISM manufacturing has recovered a lot from the winter lows, we believe it canimprove a bit further in the short term before moderating in Q3.

We expect today’s euro-area inflation to increase to 0.7% y/y (from 0.5% y/y in May)from an initial forecast of just 0.5% y/y on the back of the higher-than-expectedGerman inflation numbers released on Friday.

USDJPY – wave-c of E is targeting 101; look for 101.32 break near-term

The triangle we were tracking from 6/12 broke in a bearish fashion and has continued the downtrend that began with the 102.80 top.

EURUSD – < 1.36 suggest that corrective rally into range highs is done

The Euro traded close to the top end of the 2-month 1.3675/3510 range yesterday.

FX Daily

In the euro area German and Spanish HICP will give the first set of information aboutinflation in June.

FX Daily

Today US PCE core inflation is due for release and we expect the PCE core toincrease to 1.5% y/y in May from 1.4% y/y in April.