Cornelius Luca // New York, July 26 (BridgeNews) - The euro fell from a fresh two-month peak of 88.25 cents following the release of a larger-than-expected growth of 6.1% on the year in the June euro-zone M3 money supply. The data deliver a blow to rate cut hopes, which had been encouraged this week by a big drop in German inflation.

Sterling/dollar slipped into negative territory from a six-day high of 1.4309 and dollar/Swiss franc rebounded within Wednesday's range. Dollar/yen, meanwhile, rebounded from a three-day low of 123.15, although it remained within Monday's trading borders, and dollar/Canada bounced from an eight-day low of 1.5348.
The economic agenda is dominated by the second-quarter employment costs and by the June durable goods orders.
Traders will also gauge the capacity of the U.S. equities to add to their Wednesday's gains.
The intraday outlook for the dollar is mildly bullish.

Current Previous Change Global Global
NY open NY close low high

USD/JPY 123.92 123.64 0.28 123.15 123.99
EUR/USD 0.8763 0.8806 -0.0043 0.8761 0.8825
EUR/JPY 108.59 108.90 -0.31 108.45 108.90
GBP/USD 1.4260 1.4276 -0.0016 1.4265 1.4309
USD/CHF 1.7242 1.7145 0.0097 1.7106 1.7247
USD/CAD 1.5369 1.5365 0.0004 1.5348 1.5385
AUD/USD 0.5081 0.5078 0.0003 0.5075 0.5117

USD/JPY bounced from a 3-day low of 123.15, but failed to break out of Monday's range. Japanese banks had spearheaded the initial sell-off. The pair remains resisted by, but in the immediate vicinity of the 124.00 Gann 50-point pivot, which targets 123.50 and 124.50.
The yen was undermined by news that sales by major Japanese retailers amounted to 1.776 trillion yen in June, down 1.9% from a year earlier after adjustment for the number of stores. Sales have declined on the year every month since May 1998, indicating private consumption remains weak.
Bank of Japan Governor Masaru Hayami said that BOJ will aim to appropriately manage monetary policy while closely watching developments in the economy.
The intraday outlook is slightly bullish.

Support: 123.15 (overnight low), 122.83 (60-day moving average), 122.70 (July 20 trough), 122.50 (Gann 50-point pivot; targets: 122.00/123.00), 121.05 (Gann 50-point pivot; targets: 120.55/121.55).
Resistance: 123.94 (overnight high), 124.00 (Gann 50-point pivot; targets: 123.50/124.50), 124.48 (20-day moving average), 125.50 (Gann 50-point pivot; targets: 125.00/126.00), 126.15 (July 6 high; 3-month high), 126.84 (April 2 high; 29-month high), 127.00 (Gann 50-point pivot; targets: 126.50/127.50).

In addition to the M3 data, EUR/USD's decline from a 2-month high of 0.8825 was accelerated by demand for USD/CHF/USD and by technical resistance from a trendline.
In other news, the German annual import price inflation rate slipped to 3.6% in June from 4.0% in May, hitting the lowest inflation level since September 1999.
The intraday outlook is slightly bearish to mixed.

Support: 0.8770 (overnight low), 0.8589 (20-day moving average), 0.8350 (July 6 low; 7-month low).
Resistance: 0.8790 (38.2% Fibonacci retracement level of the June-October downtrend), 0.8825 (overnight high), 0.8848 (61.8% Fibonacci retracement level of the Nov. 27-Jan. 5 uptrend), 0.8880 (200-day moving average).

EUR/JPY slipped quietly on profit taking but remained within Wednesday's range.
The intraday outlook is neutral.

Support: 108.45 (overnight low), 107.58 (100-day moving average), 106.93 (20-day moving average), 105.85 (60-day moving average), 105.80 (38.2% Fibonacci retracement level of May 1999-October 2000 downtrend), 104.94 (200-day moving average), 104.54 (June 20 low).
Resistance: 108.90 (overnight high), 109.07 (July 25 high; 2-month high), 109.72 (May 16 high; top of consolidation area), 111.02 (50% Fibonacci retracement level of May 1999-October 2000 downtrend).

GBP/USD fell from a 6-day high of 1.4309 after failing to penetrate the resistance of a trendline. The slide was fed by sell-stops at 1.4270.
A MORI poll showed U.K. consumers have become a lot more pessimistic about the outlook for the U.K. economy. MORI's economic optimism index fell to a reading of minus 15 in July from minus 4 in June.
The outlook is bearish, with support provided by the 100-day moving average at 1.4224.