Fundamentals

EUR/USD Fundamental Outlook at 1500 GMT (EST + 0500) How Long Can the Dollar Remain Strong? Forex and Dow Jones recommended levels More EUR/USD

The euro weakened vis--vis the U.S. dollar today as the single currency tested bids around the US$ 1.5825 level and was capped around the $1.5945 level. Technically, todays intraday high was right around the 23.6% retracement of the move from $1.5610 to $1.6040. The common currency eroded during the North American session after NYMEX crude oil futures for September delivery slipped nearly $5.00 to the $126 handle. Comments from Philadelphia Fed President Plosser also sent the euro lower as Plosser reported inflationary pressures are "too high" and said policymakers may need to raise rates "sooner rather than later." Plosser added he isnt sure the publics inflation expectations will remain "well-anchored." Data released in the U.S. today saw retail sales up +1.1% m/m in the first two weeks of July. Traders await the release of the Feds Beige Book tomorrow. In eurozone news, European Central Bank member Bini Smaghi noted EMU-15 inflation would be "higher" without the ECBs current monetary policy. EMU-15 May new industrial orders data will be released tomorrow. Euro bids are cited around the $1.5645/ $1.5230 levels.