The FX market remains on hold as we wait for the EZ meeting later today and also on the US debt-ceiling talks. The USD lost a bit of ground overnight with USD/JPY slipping back towards what’s now becoming vital support near 78.30/50 and USD/CHF also giving up some of its recent gains. Cable remains capped by sell orders between 1.6170/1.6200, EUR/USD looks intent on testing important technical resistance at 1.4290/00, and AUD/USD is back towards the upper end of its 1.05/1.08 consolidation range.
China’s flash PMI may provide some volatility but otherwise it will be headlines relating to the EZ talks which may provide some volatility.
Good luck today
