Currency Analyst since 2010

June 27: Asian session

The greenback weakened before the Fed’s policymakers are scheduled to speak today as the central bank considers whether the economy is strong enough to taper its stimulus program. Richmond Fed President Jeffrey Lacker said yesterday the Fed isn’t close to reducing its bond holdings. Today we’ll here from New York Fed President William C. Dudley and Atlanta Fed President Dennis Lockhart.

EUR/USD recovered to $1.3035 after hitting $1.2985 yesterday. EU finance chiefs struck an agreement on how to handle failing banks. Today is the first day of the EU economic summit. Also watch for German unemployment and the euro zone’s confidence readings as key data to gauge the next possible move by the ECB. Italy will sell 10-year bonds.

GBP/USD went up to $1.5345 after testing levels below $1.5300 yesterday. Britain will release final GDP reading and current account figures. USD/JPY keeps consolidating in the narrow 97.60/90 range. Tonight watch a bunch of important Japan data, including CPI industrial production and retail sales. USD/CHF edged lower to $0.9410 from yesterday’s high of $0.9440.

Shanghai Composite index is trading in the positive territory despite the fact that Fitch agency has cut China GDP growth forecast to 7.5% for 2013. AUD/USD strengthened to $0.9340 in the Asian trade. NZD/USD rose to $0.7835. On Wednesday the pair peaked at $0.7860, but closed the day below $0.7800. ANZ Business Confidence for June jumped to 50.1 vs. prior 41.8. RBNZ Deputy Governor Spencer said that New Zealand interest rate rises are not the right policy at this time. New Zealand May trade balance came at 71M (vs. expected 427M). USD/CAD declined to 1.0430.

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