By FXEmpire.com

Analysis and Recommendations:

The EUR/USD declined throughout the European session. The pair is trading at 1.2495 and falling. On the eve of the EcoFin Summit, Spain, Italy and Greece remain the focus. Markets and Global Leaders are pressuring the euro ministers for a hardcore plan of action.

The euro has declined by 0.6% since Friday. Yields in Spain and Italy have moved higher, but are still off their June highs. Spain has formally asked for aid to help recapitalize its banking system; however the amount isstill in question, but aims to complete the bailout by July 9th. There is virtually no eco data today. The focus this week is on the EU summit. The conclusion is unlikely to provide a long term European solution, like debt mutualization, as the hurdles are high. However leaders are likely to take significant steps taken towards: 1) a banking union, through deposit insurance, supervision and potentially a recapitalization fund and 2) growth measures, which could include the potential for infrastructure spending through project bonds. Last week’s announcement of a growth fund of EUR130bn or 1% of GDP with limited details over funding and implementation has done little to ease uncertainties.

The differences between France and Germany are bound to cause some friction. In a last minute surprise Greece has made their demands public, but the Prime Minister and the newly appointing Finance Minister will not be attending the summit.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date

Time

Currency

Event

Previous

Jun 26

8:30

GBP

Public Sector Net Borrowing

-18.8B

13:00

USD

S&P/CS Composite-20 HPI y/y

-2.6%

14:00

USD

CB Consumer Confidence

64.9

Jun 27

All Day

EUR

German Prelim CPI m/m

-0.2%

8:30

GBP

BBA Mortgage Approvals

32.4K

10:00

GBP

CBI Realized Sales

21

12:30

USD

Durable Goods Orders m/m

0.2%

14:00

USD

Pending Home Sales m/m

-5.5%

14:30

USD

Crude Oil Inventories

Jun 28

7:55

EUR

German Unemployment Change

0K

8:30

GBP

Current Account

-8.5B

8:30

GBP

BOE Credit Conditions Survey

8:30

GBP

Final GDP q/q

-0.3%

12:30

USD

Unemployment Claims

12:30

USD

Final GDP q/q

1.9%

23:01

GBP

GfK Consumer Confidence

-29

Jun 29

29th-4th

EUR

German Retail Sales m/m

0.6%

6:45

EUR

French Consumer Spending m/m

0.6%

7:00

CHF

KOF Economic Barometer

0.81

8:00

EUR

M3 Money Supply y/y

2.5%

9:00

EUR

CPI Flash Estimate y/y

2.4%

12:30

USD

Core PCE Price Index m/m

0.1%

12:30

USD

Personal Spending m/m

0.3%

13:45

USD

Chicago PMI

52.7

13:55

USD

Revised UoM Consumer Sentiment

74.1

Click here to read EUR/USD Technical Analysis.

Originally posted here