? The euro appreciated vis-?-vis the U.S. dollar today as the single currency tested offers around the US$ 1.5765 level and was supported around the $1.5695 level. Technically, today's intraday low was right around the 23.6% retracement of the move from $1.5285 to $1.5815. A move in NYMEX July crude oil futures back above the $132 and $133 figures at the historical beginning of the U.S. summer driving season pushed the U.S. dollar lower. Data released in the eurozone today saw EMU-15 May Purchasing Managers' Index for the service sector fall to 50.6, its weakest level in nearly five years, while the manufacturing component weakened to 50.5. Germany's May manufacturing PMI survey ticked lower to 53.5 from 53.7. In U.S. news, April existing home sales were off 1.0% to an annualized 4.89 million unit rate. Liquidity will be reduced on Monday on account of the long U.S. holiday weekend. Euro bids are cited around the US$ 1.5230 level.
?/ CNY The yen appreciated vis-?-vis the U.S. dollar today as the greenback tested bids around the ?103.30 level and was capped around the ?104.25 level. The pair moved to intraday lows during the North American session. Bank of Japan Governor Shirakawa said the central bank is “not ruling out any policy options.” Minutes from BoJ's 8-9 April Policy Board meeting were released today in which policymakers agreed downside risks to the Japanese economy are “increasing” and that consumers' rising inflation expectations “warrant attention.” BoJ is expected to keep its overnight call rate unchanged around 0.50% for the next several months. The Nikkei 225 stock index gained 0.24% to close at ?14,012.20. Dollar bids are cited around the ?103.00/ 101.35 levels. The euro came off vis-?-vis the yen as the single currency tested bids around the ?162.60 level and was capped around the ?163.85 level. The British pound and Swiss franc weakened vis-?-vis the yen as the crosses tested bids around the ?204.70 and ?100.50 levels, respectively. The Chinese yuan appreciated vis-?-vis the U.S. dollar as the greenback closed at CNY 6.9417 in the over-the-counter market, down from CNY 6.9430 and the pair's weakest close since the yuan revaluation of July 2005.
₤ The British pound appreciated vis-?-vis the U.S. dollar today as cable tested offers around the US$ 1.9850 level and was supported around the $1.9755 level. Technically, today's intraday low was right around the 61.8% retracement of the move from $2.0025 to $1.9360. The pair reached its highest level since 2 May. Data released in the U.K. today saw Q1 GDP unrevised at a quarterly growth rate of 0.4% and an annualized 2.5%, below its trend rate of growth. Household spending remained firm, however, and economists note this is important because it evidences ongoing resilience in final private demand during a period when the global and domestic economies were shaky. Cable bids are cited around the US$ 1.9360/ 1.9100 levels. The euro gained marginal ground vis-?-vis the British pound as the single currency tested offers around the ₤0.7955 level and was supported around the ₤0.7935 level.
CHF The Swiss franc appreciated vis-?-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0245 level and was capped around the CHF 1.0335 level. Technically, today's intraday high and low were right around the 38.2% and 50.0% retracements of the move from CHF 0.9865 to CHF 1.0625, respectively. Swiss National Bank Chairman Roth said the central bank is prepared to support troubles banks if necessary to protect the banking system's financial stability. Roth noted he “vehemently supports the banking commission's initiative for higher capital and liquidity requirements.” U.S. dollar offers are cited around the CHF 1.0760 level. The euro and British pound came off vis-?-vis the Swiss franc as the crosses tested bids around the CHF 1.6155 and CHF 2.0325 levels, respectively.
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