Currency Analyst since 2010

July 9: Asian session

US dollar remains strong amid speculation that tomorrow the Fed will provide further guidance on plans to scale back asset purchases.

EUR/USD is little changed, in the $1.2865 area after visiting $1.2845 earlier during the Asian session. The ECB President Mario Draghi said on Monday was very dovish saying that recession will be the main systemic risk to the EU, also adding that rates will remain at record lows for an extended period.

GBP/USD is trading in the opening area of $1.4945 after sliding to $1.4919 in Asia. UK will release manufacturing and industrial production data as well as trade balance at 08:30 GMT. USD/JPY strengthened to 101.25, but stays below the yesterday’s peak of 101.53. Later in the day Japan is scheduled to release policy meeting minutes and tertiary industry activity index. USD/CHF recovered to 0.9642. Yesterday the pair closed in the red after having touched a 6-week high of 0.9665.

AUD/USD tried to dip lower in the Asian trade, but was capped at $0.9085 and recovered to $0.9130.  Australia national business conditions index for June came worse than expected at -8 (prior: -4). National Australia business confidence index came at 0 (prior: -1). NZD/USD recovered to $0.7812 following a dip to $0.7760 earlier in the day. Chinese CPI came above expectations at 2.7% y/y (forecast: 2.5%, prior: 2.1%). USD/CAD is in the 1.0560 area after testing 1.0575 today.

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