European session: slowdown of world's economy supports USD [E]

Next data issued:
09:00 EU Industrial orders, May, y/y 14.2% 3.9%
09:00 EU Industrial orders, May, m/m 2.3% -0,8%
10:00 UK CBI retail sales volume balance, July +7% +8% +9%

On Monday on EU session USD rose against the euro and yen on speculation global economy slowdown will urge investors to choose less risky assets denominated in the dollar.
Fed higher rates can impact world economy cooling, materials demand drop, reduce
export profit and lure investors to sell shares. Growth slowed in the Q2 as consumers spent less because of raising borrowing costs and near-record gasoline prices.
The dollar has more advantageous position in a light of conflict between Lebanon and Israel. Today Israel soldiers have entered into South Lebanon in the morning.
The yen falls against the dollar on speculations BoJ will cut off its rates hike.
The report showed new industrial orders in Eurozone in May gained more than expected. Growth of orders in May compensated orders' reduction in April.
CBI report declared retail sales in Britain in July is raising, but perspectives for coming months became less favorable.
CBI member Lambert said, small rate increase may be necessary in the end of year and Britain economy growth in Q2 can slowdown.

EUR/USD fell to support $1.2610 during the trades. Bids placed here caused a little recoil to $1.2630. Then the rate stabilized in a range $1.2615/25.
GBP/USD after drop to $1.8480 rate rose to $1.8540/50. The rate didn't overcome this area and stabilized in a range $1.8510/30.
USD/JPY advanced to Y116.80/90 during the trades. Offers located here contained further growth of the rate and it stabilized in a range Y116.60/80.

Today the market doesn't expect any important news. Day will be quiet. Trades will be defined by a technical picture.