The consumer products giant Johnson & Johnson said second-quarter profit jumped 8% to $1.17 per share on sales of consumer health and medical products, beating analysts’ expectations.

Oppenheimer & Co.'s Meredith Whitney, the analyst who predicted Citi would reduce its dividend this year, said the earnings outlook for Wachovia Corp has ``dramatically diminished'' and prospects for its shareholders are ``bleak.''

The automaker General Motors Corporation announced that it would suspend its dividend, cut 20% of its workforce and sell off between $4B and $7B of its assets. CEO Rick Wagoner called the decisions "difficult," but said they were necessary for its survival.

National City Corporation, the regional lender is under pressure after federal regulators moved to seize IndyMac Bancorp.

The Nasdaq continues to outperform, lifted by small-cap tech names. Meanwhile, the S&P 500 trades with a modest loss.
Kimberly-Clark (KMB 55.81, -2.99) is undeprforming with a 5.1% loss, although it has recovered from its session low when it was down 14.3%. The company reported preliminary second quaerter earnings that fell short of previous guidance and the company lowered its fiscal year 2008 outlook, citing higher input costs.

The S&P 500 has fallen back into negative territory after making its way into positive ground. The increased selling pressure is also undermining the advance of the Dow Jones and the Nasdaq.
Microsoft (+0.94) is lending support to the Dow and Nasdaq, acting as the primary leader. Yesterday the stock encountered stiff selling pressure as large-cap tech names fell out of favor.
Technology (+0.2%) has been one of the better performing sectors this session.

The dollar touched a record low against the euro as Federal Reserve Chairman Ben S. Bernanke said growth and inflation risks have both increased.
The currency weakened the most against the yen since the March collapse of Bear Stearns Cos. as Bernanke said helping financial markets return to more normal functioning remains ``a top priority.'' The dollar pared its drop versus the euro after the price of crude oil fell as much as $9.26 a barrel.
``Bernanke clearly acknowledged more growth risks than he anticipated a few weeks ago,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York. ``There's a tremendous amount of uncertainty about the dollar.''
The Dollar Index, which tracks the greenback against the currencies of six U.S. trading partners, fell for a fifth day on the ICE market, dropping as much as 0.8 percent to 71.314, the lowest level since April 23, from 71.915.
President George W. Bush said in a White House news conference today that the administration's efforts to bolster the U.S. mortgage markets are intended as a ``temporary'' measure to stabilize the troubled housing industry.
The dollar pared declines today after the price of crude oil fell as much as 6.4 percent to $135.9 a barrel, lowering the inflationary pressure on the economy. The Standard & Poor's 500 Index dropped 1.2 percent.
``We've reached an extreme point of bearishness with equities and the U.S. dollar,'' said Alan Kabbani, a senior currency trader at Wachovia Corp. in Charlotte, North Carolina. ``Maybe we're very close to the bottom here.''
Retail sales advanced 0.1 percent last month, after a revised 0.8 percent advance in May, the Commerce Department reported today in Washington. U.S. producer prices rose 9.2 percent in the 12 months ended in June, the Labor Department said. The median forecast of 25 economists was for an increase of 8.7 percent.
``We don't think the U.S. economy, or the financial system, is uniquely vulnerable,'' said Robert Minikin, a senior currency strategist at Standard Chartered Plc. ``We see a lot of negative news on the U.K. and the euro-zone economies. The balance of risks is tilted toward a recovery.''

The major indices are trading at their best levels of the session. The Nasdaq is posting a decent-sized gain, the Dow is at the unchanged mark and the S&P 500 is posting only a slight loss.
Financials are leading the way with a gain of 1.7% after staging an impressive afternoon turnaround from a loss of 5.7%. Within the sector, 55 of the 89 components are posting a gain, led by State Street (+6.39), Wells Fargo (+0.96) and Washington Mutual (+0.91). Of note, the two companies at the center of the recent turmoil -- Fannie Mae (-1.69) and Freddie Mac (-1.14) -- are still posting substantial declines.

Eases to $1.5905 area in current trade as stocks lift and oil sinks. Stops positioned sub $1.5900 but bigger risk, of course, below the overnight low at $1.5888. Break below there opens technical considerations for the euro after this morning's fresh
lifetime high at $1.6040.

Wall Street retreats on more worries about the financial services sector fallout, GM news, Bernanke comments.
Wachovia plunged 20% after influential Oppenheimer & Co. analyst Meredith Whitney downgraded it to "underperform" one day after the stock ended at a 17-year low. In her note, she said that it won't be able to cut costs fast enough to counter slumping capital, and that among the major banks it will face the "greatest reckoning."
GM. The troubled automaker said Tuesday it will lay off salaried workers, suspend its dividend and sell off $4 billion to $7 billion in assets as a means of getting its business back on track.
In remarks prepared for this semi-annual testimony before Congress, the Fed chief said that strains from housing and the financial markets will continue to drag on the economy. Bernanke was testifying before the Senate Banking Committee.
Economic news. The morning brought a slew of readings on the health of the economy.
Retail sales and sales excluding volatile autos both grew less than expected in June. Both measures also grew less than they had in the previous month.
June wholesale inflation jumped 1.8%, topping economists' forecasts, the government reported, reflecting spiking fuel and food costs. However, prices excluding volatile food and energy prices rose less than expected in the month, climbing 0.2% versus forecasts for a rise of 0.3%.
Meanwhile, wholesale prices over the last 12 months have risen 9.2%, growing at the fastest pace in 27 years. The July NY Empire State index, a closely-watched regional manufacturing report, improved to a reading of minus 4.9 from minus 8.7 in the previous month. Economists thought it would only improve to a reading of minus 8. Any reading that is negative shows weakness in the sector, while a positive reading shows growth.
In the bond market, Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.83% from 3.85% late Monday. Bond prices and yields move in opposite directions.

The major indices spike higher, but remain in the red, as crude prices fall 6.0% to $136.50 per barrel. There does not appear to be a specific news item for the quick and steep drop in oil.
The recent buying interest is broad-based, with the exception of energy (-3.6%), which is tumbling as crude prices fall. Tech (+0.1%), healthcare (+0.9%), consumer staples (+0.3%) and consumer discretionary (+0.1%) are now in positive territory. Financials are down 1.2%, a large improvement from previous levels.

WTI Nymex crude oil falls to $141.65 down $3.53 on session -- move lower comes after Fed Chairman Bernanke said that there are "significant downside risks" to growth.

Stocks extend their losses in broad-based weakness that is led by financial stocks. Nine of the ten economic sectors are posting a loss, and seven of them are down more than 1%. Financials are getting trampled, falling 5.2%, making the sector's two-day decline more than 10%. Fannie Mae (FNM 7.76, -1.97) and Freddie Mac (FRE 5.36, -1.75) just had their financial strength ratings cut at Moody's.

A confirmation that "many fin'l mkts and institutions remain under considerable stress." Statement that "helping the fin mkts to return to more normal functioning" is a top priority suggests that upcoming Fed actions might not be driven entirely by econ outlook. Bernanke says econ activity was sluggish in H1 and infl remained elevated; econ has continued to expand. 2008-10 econ projections are below trend due to hsg weakness but '08 ests were upped; FOMC marked up infl expectations in '09-10, still expects moderation from '08. Fed's "critical responsblity" is to prevent infl spiral and must be critically alert to infl signals (same lip-service as given in recent speeches). Discusses commodities: oil hikes are mainly due to supply/demand. Cen-tends:'08 real GDP +1.0-1.6% (vs 0.3-1.2 in Apr);core PCE px 2.2-2.4% (vs same),'09 2-2.2% infl.

Economists at JPM believe the Chairman's testimony will be more dovish than the June FOMC statement but will offer little policy guidance. JPM also believe Bernanke will stress the downside risks to growth and believe "the characterization of growth risks to sound a little less optimistic than the most recent FOMC statement." JPM also looks for three revisions in the FOMC qtly projections towards upward revision to 2008 growth, unemployment and inflation.

Futures suggest a decidedly lower start, but have recovered from their worst levels: S&P futures vs fair value: -11.5. Nasdaq futures vs fair value: -12.5.
As expected, General Motors (GM) announced steps it is taking to to bolster its liquidity and adapt its business to changing market conditions. GM expects that its plan will have a cumulative cash impact of $15 billion through 2009 by taking steps such as cutting its salaried workforce by 20% and suspending future dividends on common stock effective immediately. The struggling U.S. automaker will also raise cash through asset sales and financing activities.
Reported earlier this morning, US Bancorp (USB) earned $0.64 per share in the second quarter, excluding a $0.11 loss from "significant items". The results may not be comparable to the First Call consensus of $0.60 per share.
Oil prices wavered as traders worried about threats to supply. U.S. crude for August delivery held above $145 a barrel in electronic trading.
Chipmaker Intel Corp. is scheduled to release its second-quarter earnings at 4:00 p.m. ET.
Meanwhile consumer products giant Johnson & Johnson said second-quarter profit jumped 8% to $1.17 per share on sales of consumer health and medical products. Analysts polled by Thomson Financial had expected $1.12 per share.

HFE's Ian Shepherdson - "This measure of sales rose 1.1% in April and 1.0% in May, boosted by the tax rebates, but the June numbers suggest the impact has now faded quite markedly. One month proves nothing, but if this continues the post-rebate letdown will come in late summer rather than the fall, though Q2 GDP will still likely exceed 3%."

Overnight rate target remains at 3.00%, bank rate at 3.25%

The dollar fell against the yen and euro on speculation Federal Reserve Chairman Ben S. Bernanke and U.S. Treasury Secretary Henry Paulson will tell lawmakers credit-market losses will weigh on U.S. economic growth.

The currency declined to a 25-year low versus the Australian dollar on concern confidence in the debt of Fannie Mae and Freddie Mac will deteriorate even after the U.S. government pledged support for the two-largest buyers of home loans.

The yen remained higher after the Bank of Japan kept interest rates unchanged at 0.5% today, the lowest among major economies. The yen may rise as high as Y100 per dollar this year as the Bank of Japan is more likely to raise interest rates than the Federal Reserve, said Toyoo Gyohten, former currency-policy chief at Japan's Ministry of Finance.

Gains in the euro may be limited after a report showed investor confidence in Germany, Europe's largest economy, fell to a record low in July, weakening the case for higher rates.

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations fell to minus 63.9 in July from minus 52.4 the previous month. Economists expected a decline to minus 55.

EUR/USD printed high on $1.6030 before fell back to $1.5970. Offers seen to $1.6050, a break above to open a move on toward $1.6065/75 ahead of $1.6100. Bids remain in place on the approach to $1.5950.

GBP/USD continued yesterday’s rally and having broke above $2.0000/10 printed high on $2.0134, before pound corrected a bid from best levels ahead of NY.

USD/JPY challenged Y106.00, but failed to break above and retreated to Y105.00. Bids Y104.50, Y104.10/00, offers Y105.50, Y105.90/106.00

- OPEC cuts 2008 world oil demand growth forecast by 70,000 bpd to 1.03 mln bpd
- OPEC lowers 2008 non-OPEC supply growth forecast to 580,000 bpd from previous forecast of 690,000 bpd
- OPEC sees world oil demand rising by 900,000 bpd in 2009, less than growth in in non-OPEC supply of 940,000
- OPEC says 2009 demand for its oil to average 31.24 mln bpd, down from 31.95 mln bpd in 2008.

The dollar declined to a record against the euro on speculation Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson will say credit- market losses are hurting U.S. economic growth. The dollar declined to $1.6038 per euro, the lowest since the euro's inception in 1999.
The currency also declined to a 25-year low versus the Australian dollar on concern confidence in the debt of Fannie Mae and Freddie Mac will deteriorate even after the U.S. government pledged support for the two-largest buyers of home loans. The yen rose after the Bank of Japan kept interest rates at 0.5 percent today, the lowest among major economies.
``The markets are reacting negatively to the renewed credit crisis in the U.S. and that's hurting the dollar across the board,'' said Roberto Mialich, a Milan-based currency strategist at Unicredit Markets & Investment Banking, a unit of Italy's largest lender. ``The market is speculating that Bernanke will offer a gloomy outlook for the U.S. economy.''
The dollar may fall to between $1.62 and $1.63 in the coming month, Mialich said.
``The Fed is most likely to maintain its current level of interest rates,'' Gyohten, president for the Institute of International Monetary Affairs in Tokyo, said in an interview yesterday. ``The BOJ is more likely to raise rates. The medium- term trend is for a weaker dollar and a stronger yen.''
U.S. stocks fell yesterday, led by financial shares, after the government's seizure of Pasadena, California-based IndyMac Bancorp Inc. and predictions of wider credit losses overshadowed Paulson's pledge to shore up Fannie and Freddie. The Standard & Poor's 500 Index declined 0.9 percent.
Bernanke will give his semiannual testimony on monetary policy and the economy before the Senate Banking Committee at 10 a.m. Washington time.
``Bernanke will avoid saying anything that could potentially weaken confidence in the dollar,'' said Takuma Kurosawa, global markets treasurer in Tokyo at HSBC Bank, a unit of Europe's biggest lender. ``But the reality is the U.S. housing market and credit squeeze haven't hit bottom yet. That's discouraging investors from holding dollar assets.''

Small demand at Y104.80 and Y104.50. Strong support at the top of the Ichimoku Cloud, coming in today at Y103.25.

EUR/USD $1.5950, $1.6000
USD/JPY Y105.85, Y105.50, Y106.00, Y105.00, Y107.40, Y107.60
EUR/JPY Y168.00
AUD/USD $0.9700
NZD/USD $0.7480
USD/CAD C$1.0130

Resistance 3: Y107.50
Resistance 2: Y106.80
Resistance 1: Y106.30Current price: Y105.05
Support 1: Y105.00

Support 2: Y104.40
Support 3: Y103.80

Comments: Dollar remains under pressure. Support is around Y105.00 with stronger level comes at Y104.40 (channel support line from Jun 16). Below losses may widen to Y103.80. Minor resistance is around session high on Y106.30, stronger – around Monday’s high on Y106.80 and then – near channel resistance line on Y107.50.

Resistance 3: Chf1.0300

Resistance 2: Chf1.0250
Resistance 1: Chf1.0180
Current price: Chf1.0058
Support 1: Chf1.0060
Support 2: Chf1.0020
Support 3: Chf0.9980

Comments: Dollar retreats today, getting close to channel support line from May 08 on Chf1.0060. Break under will open the way to Chf1.0020 and Chf0.9980. Strong resistance is around session highs on Chf1.0180. Above there is a chance for testing Monday’s highs on Chf1.0250, then - Chf1.0300.

Resistance 3: $2.0230

Resistance 2: $2.0200

Resistance 1: $2.0160
Current price: $2.0090
Support 1: $1.9930
Support 2: $1.9810

Support 3: $1.9740

Comments: Sterling rises, going thrugh the physiological level at $2.0000. The upside target is around channel resistance line from Jun 13 on $2.0160. Break above will open the way to $2.0200/30. Minor support comes near session lows on $1.9930. Below losses may widen to Monday’s lows on $1.9810. Stronger level is around channel support line on $1.9740.

Resistance 3:$1.6100
Resistance 2: $1.6080
Resistance 1: $1.6020
Current price: $1.5988
Support 1: $1.5880
Support 2: $1.5740
Support 3: $1.5600

Comments: Euro rises Tuesday, heading for life-time high on $1.6020 and then - $1.6080. Minor support is around session lows on $1.5880. Below – at channel support line from June 13 on $1.5740. Stronger level comes near Jul 07 lows on $1.5600/10.

At 09:00 GMT ZEW Center for European Economic Research will release its economic expectation index. Analysts expect index fell to minus 55 in July from minus 52.4 in the previous month.

GBP/USD rallied to $2.0125 on the back of higher than forecast UK inflation data. Currently rate holds around $2.0080.

1.Rate choice need to account for credit impact
2.Infl expectations rise creates more infl risks
3.So far growth has been remarkably stable
4.MPC still aiming to get CPI to 2% within the 2 years
5.MPC determines to return med-term infl to 2%
6.Oil, commodities prices rise in short-term likely
7.Sterling rise unlikely at present

USD/CHF takes out stops under Chf1.0100 and now trades at the lowest level since April 23. Techs also note the break of the ten-week downchannel at Chf1.0087, with little in the way of orders now being reported ahead of Chf1.0100.

The dollar fell against the yen and euro on speculation Federal Reserve Chairman Ben S. Bernanke and U.S. Treasury Secretary Henry Paulson will tell lawmakers credit-market losses will weigh on U.S. economic growth.
The currency declined to a 25-year low versus the Australian dollar on concern confidence in the debt of Fannie Mae and Freddie Mac will deteriorate even after the U.S. government pledged support for the two-largest buyers of home loans.
The yen remained higher after the Bank of Japan kept interest rates unchanged at 0.5% today, the lowest among major economies. The yen may rise as high as Y100 per dollar this year as the Bank of Japan is more likely to raise interest rates than the Federal Reserve, said Toyoo Gyohten, former currency-policy chief at Japan's Ministry of Finance.

EUR/USD printed low on $1.5880 before rising to session highs around $1.5960.
GBP/USD continued yesterday’s rally and printed high on $2.0000/05, where offers mentioned earlier.
USD/JPY challenged Y106.00, but failed to break above and retreated to Y105.50.

Euro may come under pressure on speculation investor confidence in Germany, Europe's largest economy, fell to a 15- year low, weakening the case for higher interest rates. The ZEW Center for European Economic Research in Mannheim will say its index of investor and analyst expectations fell to minus 55 in July from minus 52.4 in the previous month, according to a survey.
Dollar may retreat Tuesday onspeculation Fed Chairman Ben S. Bernanke will highlight risks to the economy in his semi-annual testimony on monetary policy before the Senate Banking Committee tomorrow.
Losses in the dollar may be limited by speculation reports will show inflation accelerated, spurring traders to add to bets the Fed will raise its benchmark interest rate from 2%. U.S. producer prices increased 8.7% from a year earlier in June, the most since 1981, according to a survey of economists before a Labor Department report today. A report tomorrow will show consumer prices rose 4.5% in June, the most since September 2005, according to a separate survey.

Japan's benchmark stock indices ended the day lower, although off the day's worst levels. The Nikkei 225 was down 255.60 points, or 1.96%, at 12754.56. The broader-based TOPIX was down 27.60 points at 1253.12.

EUR
Bids: $1.5920, $1.5900, $1.5885/80
Offers: $1.5970/75, $1.6000/10

JPY
Bids: Y105.50, Y105.00
Offers: Y106.30, Y106.80, Y107.00

GBP
Bids: $1.9965/55, $1.9930/20
Offers: $2.0000/10, $2.0020/30

Stock market fixing
Nikkei 225 +15.08 +0.12% 13,067.21
Topix -5.19 -0.4% 1 280.72
FTSE -122.80 -2.22% 5,406.80
DAX -81.46 -1.28% 6,305.00
CAC -108.10 -2.49% 4,231.56
Dow +81.58 +0.73% 11,229.02
NASDAQ +22.96 +1.03% 2,257.85
S&P +8.70 +0.70% 1,253.39
10yr Note -0.2300 -0.060% 3.811%
NYMEX Crude Oil +5.60 +4.12% 141.65
Gold +13.40 +1.44% 942.00

Japanese stocks fell to the lowest in three months amid concern weakness in the U.S. market will erode earnings, and shipping lines slumped after cargo rates for commodities fell.
Toyota Motor Corp. slumped to the lowest since September 2005 after KBC Securities said operating profit will likely slump 28% this year as U.S. truck sales shrink. Mitsui O.S.K. Lines Ltd. led shippers lower while Daiichi Sankyo Co. sank the most in six months after its Indian buyout target become the subject of a probe over generic drugs. JFE Holdings Inc. sent steelmakers higher after a South Korean rival raised its profit forecast.
Toyota lost 1.8%. Smaller rivals Honda Motor Co. and Nissan Motor Co. fell 1.9% and 2.4% respectively.
Mitsui O.S.K. fell 2.7%. Market leader Nippon Yusen K.K. dropped 2.3%.
Daiichi Sankyo sank 5.5%, the steepest slump since Jan. 22 and the Nikkei's third-biggest decline.

European stocks rose after takeovers increased and a six-week decline in the Dow Jones Stoxx 600 Index left shares at their cheapest relative to earnings in at least six years.
Alliance & Leicester Plc surged 53% after Banco Santander SA agreed to buy the U.K. bank, while Continental AG, Europe's second-biggest tiremaker, jumped on talks with Schaeffler Group. TNT NV rallied after a report that it's in preliminary talks with FedEx Corp. ITV Plc gained on reports Endemol NV and other media companies may be interested in the broadcaster.
InBev NV plans to pay $52 billion for Anheuser-Busch Cos. of the U.S. InBev sweetened its initial offer by 7.7% and agreed to rename itself Anheuser-Busch InBev, the brewers said.
Royal Philips Electronics NV gained 6.4%. Europe's biggest television maker posted second-quarter profit of 720 million euros ($1.14 billion), beating the estimate of 183.5 million euros in a survey.

Stocks posted slim gains Monday as investors welcomed the government's plan to rescue Fannie Mae and Freddie Mac, but remained wary about the outlook for the economy amid the credit crisis.

The companies can also access the Federal Reserve Bank of New York for funds if necessary, giving the firms the same access to funds that commercial banks and Wall Street firms. The failure of the two companies would cause more malaise for an already battered financial system, causing more losses to companies that have large holdings of mortgage-backed securities.
Freddie and Fannie shares were both lower Monday, giving up bigger opening gains. Both lost nearly half their value last week.
Over the weekend, Anheuser-Busch agreed to InBev's improved $54 billion takeover offer. The combination of the maker of Bud beer and the Belgian beer company will create the world's largest brewer.
Also this weekend, Yahoo spurned an offer from MIcrosoft and investor Carl Icahn to buy the company's Internet search unit
In other Microsoft news, the company said late Friday that it was cutting the price of its Xbox 360 gaming console and introducing a new model with a bigger hard drive.

The dollar rose against the euro for the first time in four days after Treasury Secretary Henry Paulson asked Congress for authority to buy stakes in Fannie Mae and Freddie Mac to restore confidence in financial markets.
The currency also climbed after the Federal Reserve separately authorized the companies, which buy or finance almost half the $12 trillion of U.S. mortgages, to borrow directly from the central bank. The dollar pared gains as concern losses at regional banks will deepen pushed most U.S. stocks down.

EUR/USD printed lows near $1.5840 before rebounding to session highs on $1.5930. New wave of dollar’s demand dragged the euro down to $1.5880.
GBP/USD tested $1.9811 before slowly rising to $1.9960, triggering some positions on the break through stops and bids between the $1.9900/10 zone.
USD/JPY fell from Y106.80 to Y106.00. Later rate managed to rebound to Y106.30.

Dollar may retreat Tuesday onspeculation Fed Chairman Ben S. Bernanke will highlight risks to the economy in his semi-annual testimony on monetary policy before the Senate Banking Committee tomorrow.
Euro may come under pressure on speculation investor confidence in Germany, Europe's largest economy, fell to a 15- year low, weakening the case for higher interest rates. The ZEW Center for European Economic Research in Mannheim will say its index of investor and analyst expectations fell to minus 55 in July from minus 52.4 in the previous month, according to a survey.

Resistance 3: Y107.50
Resistance 2: Y106.80
Resistance 1: Y106.30
Current price: Y105.61
Support 1: Y105.20
Support 2: Y104.40
Support 3: Y103.80
Comments: Dollar remains under pressure. Support is around Y105.20 with stronger level comes at Y104.40 (channel support line from Jun 16). Below losses may widen to Y103.80. Minor resistance is around session high on Y106.30, stronger – around Monday’s high on Y106.80 and then – near channel resistance line on Y107.50.

Resistance 3: Chf1.0300
Resistance 2: Chf1.0250
Resistance 1: Chf1.0180
Current price: Chf1.0131
Support 1: Chf1.0100
Support 2: Chf1.0060
Support 3: Chf0.9980
Comments: Dollar retreats today, getting close to minor support at Chf1.0100. Stronger level comes at channel support line from May 08 on Chf1.0060. Break under will open the way to Chf0.9980. Strong resistance is around session highs on Chf1.0180. Above there is a chance for testing Monday’s highs on Chf1.0250, then - Chf1.0300.

Resistance 3: $2.0200
Resistance 2: $2.0160
Resistance 1: $2.0000
Current price: $1.9970
Support 1: $1.9930
Support 2: $1.9810
Support 3: $1.9740
Comments: Sterling rises, going to the physiological level at $2.0000, earlier tested on Jul 01. Above the upside target is around channel resistance line from Jun 13 on $2.0160. Break above will open the way to $2.0200. Minor support comes near session lows on $1.9930. Below losses may widen to Monday’s lows on $1.9810. Stronger level is around channel support line on $1.9740.

Resistance 3:$1.6080
Resistance 2: $1.6020
Resistance 1: $1.5970
Current price: $1.5928
Support 1: $1.5880
Support 2: $1.5740
Support 3: $1.5600
Comments: Euro rises Tuesday, heading for the resistance at $1.5970 (Monday’s high). Above the target comes at life-time high on $1.6020 and then - $1.6080. Minor support is around session lows on $1.5880. Below – at channel support line from June 13 on $1.5740. Stronger level comes near Jul 07 lows on $1.5600/10.

The central bank of Australia was growing more confident that interest rates were high enough to restrain future inflation when it left rates unchanged at a 12-year high earlier this month (at 7.25%), minutes of its July meeting showed.

High Low Close
EUR/USD 1.5965 1.5839 1.5902
USD/JPY 106.81 106.01 106.17
GBP/USD 1.9961 1.9811 1.9945
USD/CHF 1.0250 1.0141 1.0165

EUR/JPY 169.65 168.73 168.85
EUR/GBP 0.8020 0.7968 0.7970
GBP/JPY 212.26 211.05 211.78
GBP/CHF 2.0358 2.0192 2.0277

Change % Change Last
Nikkei 225 +15.08 +0.12% 13,067.21
Topix -5.19 -0.4% 1 280.72
FTSE -122.80 -2.22% 5,406.80
DAX -81.46 -1.28% 6,305.00
CAC -108.10 -2.49% 4,231.56
Dow +81.58 +0.73% 11,229.02
NASDAQ +22.96 +1.03% 2,257.85
S&P +8.70 +0.70% 1,253.39
10yr Note -0.2300 -0.060% 3.811%
NYMEX Crude Oil +5.60 +4.12% 141.65
Gold +13.40 +1.44% 942.00

03:30 Japan BoJ meeting announcement 0.50% 0.50%
06:00 Japan BoJ monthly economic report (July)
08:00 Italy CPI (June) final - 0.4%
08:00 Italy CPI (June) final Y/Y - 3.8%
08:00 Italy HICP (June) final Y/Y - 4.0%
08:30 UK HICP (June) 0.4% 0.6%
08:30 UK HICP (June) Y/Y 3.6% 3.3%
08:30 UK HICP ex EFAT (June) Y/Y 1.5% 1.5%
08:30 UK Retail prices (June) 0.5% 0.5%
08:30 UK Retail prices (June) Y/Y 4.2% 4.3%
08:30 UK RPI-X (June) Y/Y 4.4% 4.4%
09:00 Germany ZEW economic expectations index (July) -57.0 -52.4
12:30 USA NY Fed Empire State manufacturing index (July) -5.0 -8.7
12:30 USA PPI (June) 1.3% 1.4%
12:30 USA PPI (June) Y/Y - 7.2%
12:30 USA PPI excluding food and energy (June) 0.3% 0.2%
12:30 USA PPI excluding food and energy (June) Y/Y - 3.0%
12:30 USA Retail sales (June) 0.5% 1.0%
12:30 USA Retail sales excluding auto (June) 1.0% 1.2%
12:55 USA Redbook (12.07)
14:00 USA Business inventories (May) 0.5% 0.5%
23:50 Japan Tertiary activity index (May) - 1.8%