Risk aversion swayed the currency market during the overnight session, with the euro breaking below the 20-Day SMA (1.2208) to reach a low of 1.2177, and the drop in sentiment is likely to drag the single-currency lower going into the U.S. trade as equity futures foreshadow a lower open for the North American market.

Talking Points
• Japanese Yen: Rallies Across the Board
• Pound: U.K. Mortgage Approvals Hold Steady in May
• Euro: Economic Confidence...

The Euro maintained the short-term rally from earlier this week and pushed to a high of 1.2140 during the overnight trade, and the exchange rate may continue to trend higher going into the U.S. trade as European policy makers hold an improved outlook for the region.

Talking Points
• Japanese Yen: Loses Ground Against Most of the Majors
• Pound: Industrial Outputs, Manufacturing Unexpectedly Falters
• Euro: German Wholesale Prices Top Forecast
•...

US Dollar Awaits the Return of Liquidity, NFPs and the G-20 Meeting

Fundamental Outlook for US Dollar: Neutral

- The OECD upgrades growth forecasts for the world’s largest economy, recommends policy tightening...

EURUSD – Euro Forecast to Fall Further Against US Dollar
GBPUSD – British Pound Outlook Remains Strongly Bearish
USDJPY – Japanese Yen Outlook Remains Bullish
USDCHF – Swiss Franc Expected to Weaken Further
USDCAD – Canadian Dollar Forecast Calls for Gains
GBPJPY – British Pound Forecast Holds Bearish Against Japanese Yen

The British Pound bounced back from the low (1.4335) and pared the overnight decline to maintain the tight range carried over from the previous week, and the GBP/USD appears to be carving a near-term bottom just above 1.4200 as the daily RSI rebounds from oversold territory.

Talking Points
• Japanese Yen: Weighed by Risk Appetite
• Pound: Mortgage Approvals Tip Higher in April
• Euro: German Consumer Confidence Weakens in June
• U.S. Dollar:...