Previous session overview

The euro surrendered an 11-week high against the dollar after better-than-expected U.S. home-prices data helped the greenback recoup some its earlier losses.

The S&P/Case-Shiller home price index for 20 major U.S. cities rose 4.6% in May versus year ago, beating analysts' expectations for a 4.1% rise. The data sent the dollar to an intraday high against the yen. The euro dipped below USD1.30 to trade at a slight loss on a day after the data.

Currencies closely tied to the pace of global growth, such as the Australian and Canadian dollars, rode the coattails of improved investor sentiment, gaining on the greenback as worries over the euro-zone's sovereign-debt crisis fade to the background - at least for now - as a steady stream of solid global economic data come into focus.

The U.K. pound also gained to its highest level since February after U.K. retail sales posted their strongest growth in three years, smashing through economists' expectations.

The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 82.120 from 82.022.

Earlier euro-zone data sent the safe-harbor dollar to its lowest level since May against a basket of its competitors. The euro gained to its highest level in 11 weeks, ticking to near USD1.3050 before surrendering its gains on the heels of the U.S. home prices data.

Market expectation

Important resistance is seen for the pound near USD1.5560, which is near the 200-day moving average and also marks the 50% retracement of the down move from the November highs at USD1.6880 and the low this year near USD1.4230, said traders.

A run toward USD1.5900 is possible if the pound can press through USD1.5610, which marks a 61.8% retracement of the down move from USD1.6460 to USD1.4230, they said.

Disclaimer: the data made available by Dukascopy Bank SA is for informational purposes only. Publication of this data by Dukascopy Bank SA does not constitute provision of investment advice and Dukascopy Bank SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions.

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