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Currency Analyst since 2010

July 10: Asian session

EUR/USD is trading near 3-month low at $1.2755 hit on Tuesday. Euro has weakened this month amid speculation the ECB may add to stimulus while the Fed tightens policy. The ECB Executive-Board member Joerg Asmussen speaks today after yesterday he said that the central bank’s policy will remain accommodative for an extended period. Later today the FOMC will release its last meeting minutes (18:00 GMT) and the Fed’s Chairman Ben Bernanke is due to speak on economic policy at 20:10 GMT. In Europe pay attention to French industrial production (06:45 GMT).

USD/JPY dropped to 100.40, breaking through the 100.80 support. Japan is scheduled to release core machinery orders tonight. Japan tertiary industry activity index for May rose by 1.2% m/m vs. expected 0.7% rise. GBP/USD is trading in the $1.4900 area after hitting $1.4813 yesterday on grim industrial data. USD/CHF is consolidating slightly below the yesterday’s high of 0.9750.

AUD/USD extends the upside for a third consecutive day despite the downbeat data, recovering to $0.9220. Australia Westpac consumer sentiment fell by 0.1% in July (June: +4.7%). RBA assistant Governor Debelle is scheduled to speak in Sydney at 7:30 GMT. NZD/USD strengthened to $0.7875. According to NZ finance minister English, the economy is gaining momentum, so interst rate will rise “not if, but when”. The Chinese trade data below expectations ($27.1B vs. forecasted $27.8) did not affect AUD and NZD significantly. USD/CAD slid to the levels just above 1.0500. The pair’s declining for the third day in a row.

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