June 2st, European session

In trading in Europe, major currencies remain in negative territory. The British and the Canadian have recently jumped in positive territory. The euro accelerated its fall and confidently broke through the support of 1.2200 (45 degrees), reaching the level of 1.2164. The single currency fell after the release of weak statistics in Germany. Against this background, the dollar index rose to 90.23 p.

Retail sales in Germany fell 5.5% in May from the previous month and rose 4.4% year on year. It was expected that the reduction will be 2% over the month, and will grow by 10.1% over the year.

The yield on 10-year US bonds is trading at 1.591%. Due to statistics and the general strengthening of the dollar, traders ignored the decline in profitability. Currencies may now accelerate their gains against the US dollar as the US10Y broke through the 1.60% support. Euro recovery will be affected by the EUR/GBP cross pair. If it rises to 0.8630, the EUR/USD pair will rise to 1.2218.

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