EU session review: Euro falls versus Dollar amid EU ministers meeting on Greece

Data released:
06:58     France     PMI (June) flash    52.5    53.8    54.9
06:58     France     PMI services (June) flash    56.7    60.3    62.5
07:28     Germany     PMI (June) flash    54.9    56.8    57.7
07:28     Germany     PMI services (June) flash    58.3    55.5    56.1
07:58     EU(17)     PMI (June) flash    52.0    53.7    54.6
07:58     EU(17)     PMI services (June) flash    54.2    55.4    56.0
08:00     Italy     Consumer confidence (June)    105.8    105.0    106.5
10:00     UK     CBI retail sales volume balance (June)    -2%    12%    18%

The euro weakened before European leaders begin a two-day summit in Brussels today to discuss Greece’s financial problems. The single currency dropped for a second day against the dollar on prospects Greek Prime Minister George Papandreou will face difficulty in getting parliamentary approval next week for a package of budget cuts and asset sales, needed to be eligible for a second round of aid.
European finance chiefs will decide on July 3 whether Greece has met conditions for its next aid payment.
European Central Bank President Jean-Claude Trichet said the debt crisis threatens to infect banks.
The euro also declined as Athens-based newspaper Kathimerini reported that officials from the European Union and International Monetary Fund assessing Greece’s efforts to cut its budget deficit have expressed doubts about the viability of 3.8 billion euros of measures slated for this year. The measures are part of a total of 6.4 billion euros in deficit-reduction measures this year.

EUR/USD remains under pressure after rate triggered stops between $1.4250/40. Next support placed at $1.4214 (61.8% Fibo of $1.4073/1.4442 move). Bids suggested from this level and extending toward $1.4200. Resistance now seen at $1.4250/60 ahead of $1.4280.

GBP/USD tries to recover after it tasted support at $1.5980. Bids remain around $1.5980/70. A break below to open a deeper move toward $1.5950 ahead of $1.5915/00. Resistance placed at $1.6000/05.

USD/JPY retreated from session highs on Y80.65 and currently holds a bit lower. Support is near Y80.35 (local lows).

US data for today include initial jobless clains at 12:30 GMT and new home sales at 14:00  GMT.