The rupee fell 15 paise to a new low of 58.30 against the dollar versus the previous close of 58.15. In previous trading session, the rupee sank 110 paise at a life-time low of 58.15 against the dollar hurt by outflows of the American currency and weak macro-economic indicators. 

China, the world's 2nd largest oil consumer after the US, imported 23.95 million metric tonnes of crude oil in May this year, 6% less than that in the same month of last year. The crude oil imports last month were 3.8% more than the 23.08 million metric tonnes in April.

Data/Event Risks

GBP:  The industrial production data is expected to show a flat reading after last month’s better than expected 0.7% MoM gain.  Sterling has received some benefit from better than expected data of late, but has certainly not been keen to run away to the upside whilst the MPC has still seen three members voting for more QE.

USD:  Just wholesale inventories data today, which is not a big risk event for the dollar.

The markets opened with minor gaps this week, indicating that there would be serious fluctuations and volatility in the markets. Also, the optimism surrounding the EUR and the GBP are driving bullish biases; even on the JPY pairs.

EURUSD:  There is still a Bullish Confirmation Pattern on this chart, as the Williams’ % Range moves very near to the overbought territory. The resistance line at 1.3300 was tested last week, and it could be tested again very soon – even possibly breached to the upside as the price goes further north.

Gold futures plunged to end below $1400 during previous week, tracking rising equity markets in Europe & US with the dollar strengthening against a basket of select currencies after some upbeat, better than expected jobs data out of the US, notwithstanding an increase in unemployment rate. Gold futures shed 0.7% for the week. Employment in the US increased a little more than anticipated in May.

Data/Event Risks

EUR: Just data from Italy worth watching, but it’s unlikely to cause too many issues for the single currency.  Industrial production is seen flat in month on month terms, whilst GDP is the final release so not a risk for markets.

The price of oil rose slightly in today's trading session, extending gains posted late last week on the heels of a positive U.S. employment report. Benchmark oil for July delivery rose 5 cents to $96.08 per barrel in electronic trading on the New York Mercantile Exchange. The contract for benchmark crude rose $1.27 to close at $96.03 a barrel on the Nymex during previous trading session.

The last week was characterized with significant movements in the currency markets. However, there were sharp reversals on June 7, 2013. The reversals are great opportunities to follow the major biases at better prices.   

EURUSD:  The market trended northwards last week, hitting the resistance line at 1.3300 before its current pullback. The pullback is not supposed to pull the price backwards below the support line at 1.3150. This means it is expected that the market would continue going north.