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Initial dollar relief
US consumer confidence strengthened to 106.5 in July from 105.4 the previous month while existing home sales fell by 1.3% to 6.62mn with both figures slightly above market expectations. The data still suggests a slowdown in the economy, especially with housing inventories at a 9-year high, but there will be relief that the figures were not worse. The dollar could edge slightly stronger against the Euro, but with resistance likely close to 1.2610.