Asian session: The euro rose
The euro rose to a three-week high against the dollar on prospects the European Central Bank will increase interest rates next week to curb inflation and as the immediate risk of default by Greece subsided.
The common currency advanced against most of its major peers before a report forecast to show gains in European consumer prices accelerated in June. ECB President Jean-Claude Trichet said on June 28 that policy makers are in “strong vigilance mode” ahead of next week’s meeting.
The dollar weakened before a report that may show U.S. business activity cooled. South Korea’s won rose on data signaling a recovery in factory production.
The dollar headed for a quarterly loss against 14 of its 16 most-traded counterparts. The Institute for Supply Management- Chicago Inc. will say today its business barometer fell to 54.0 in June from 56.6 in May, according to the median estimate of economists in a survey. Figures greater than 50 signal expansion.
EUR/USD: the pair become stronger in $1.4500 area.
GBP/USD: the pair shown high in the field of $1.6110 then decreased.
USD/JPY: the pair decreased in Y80.30 area.
German domestic May unemployment data is released at 0755GMT, followed at 0800GMT with the release of the ECB May M3 numbers. At 0900GMT, the EMU June flash HICP data is expected, the same time as the Italian June HICP data. The US calendar starts at 1230GMT, with the weekly Jobless Claims data. Claims are expected to fall 9,000 to 420,000 in the June 25 employment survey week. Also at 1230GMT, the ISM-NY Business Index data is released. At 1345GMT the June Chicago Purchasers Index data is released. The Chicago PMI is expected to fall to a reading of 53.0 in June after falling more than 10 points in May.
UK data - at 0830GMT the Q2 BOE Credit Conditions Survey hits dealers screens.