EUR/USD
The release of weaker than expected retail sales report from the US, which showed that Retail Sales Ex. Auto & Gas for the month of June have fallen to lowest level since June 2012 and in turn resulted in USD weakness was not enough to offset the cautious sentiment towards the currency amid the politically driven uncertainty out of Portugal. As such, even though the pair managed to recover a good part of the move lower observed during the first half of the trading session, it still settled the session in negative territory. In terms of technical levels, supports are seen at the 50% retracement of the 1.2755 to 1.3208 move at 1.2982 level, 1.2966 and then at 1.2949. On the other hand, resistance levels are seen at the 30DMA line at 1.3118, 1.3147 and then at 1.3208.
GBP/USD
In spite of starting the session on the back foot, the pair finished the session little changed after the release of weaker than expected US Retail Sales report weighed on the USD. In terms of UK related news flow, according to the Ernst and Young Item Club, Britain's economy will grow faster this year than previously forecast as consumers cut into savings to keep spending. Also, UK Rightmove raised 2013 house price growth forecast to 4% from 2%.
USD/JPY
Given the absence of market participants in Japan due to market holiday meant that traders in Europe were able to capitalise on the muted USD/JPY price action, which saw the pair trade back above the key 100.00 level. However the release of the less than impressive macroeconomic data from the US, which showed that US Retail Sales Ex. Auto & Gas for the month of June have fallen to lowest level since June 2012, which in turn depressed inflation expectations even further, resulted in broad based USD weakness and capped further gains for the pair. Technically, support levels are seen at 99.06, 98.67 and then at 98.20. On the other hand, resistance levels are seen at the 76.4% retracement of the 101.54 to 98.20 move at 100.75 and then at the psychologically important 101.00 level.