After a third failure to sustain momentum above 1.1030, EUR/USD fell sharply and extended losses towards 1.0855 overnight. Price action suggests further losses are ahead, as bears clearly remain in control. Dealers report decent selling interest in the 1.0945/50 area and then again at 1.1000/10. Similar price action in GBP/USD, which almost reached 1.50 after better than expected UK retail sales. It stopped just a few pips shy of the level and then eventually fell back to 1.48. Next key support at 1.4720 and then 1.4685. USD/JPY bounced just ahead off the pivotal 118.20 support area and made it back above 119.00. The major obstacle remains the 120.00 level, and until we get a clear break above, the overall bias remains bearish.
07:45 GMT – French Consumer Confidence (93.0)
08:30 GMT – Swedish Retail Sales (0.3 % m/m)
08:45 GMT – Bank of England Governor Carney speaks
09:00 GMT – Italian Industrial New Orders
09:00 GMT – Norwegian Unemployment Change (89k)
09:00 GMT – Norwegian Unemployment Rate (3.0 %)
09:15 GMT – Bank of England MPC Member Broadbent speaks