Currency Analyst since 2010

July 30: Asian session

EUR/USD remained capped by $1.3300 yesterday and slid to the $1.3250 area today. Euro stayed lower before the ECB policy meeting on Thursday. The Federal Open Market Committee starts a 2-day meeting today. In addition, the contraction in US pending home sales (data were released yesterday) wasn’t as big as expected. In the euro area watch today for GfK German consumer climate and preliminary CPI, Spanish GDP and Italian 10-year bond auction (see the economic calendar). GBP/USD didn’t manage to overcome $1.5400 and is trading around $1.5340 today.

USD/JPY got support around 97.65 yesterday and recovered to 98.40. Yen weakened against most of its major peers as rallying Japanese shares damped demand for haven assets and weaker-than-forecast production data backed the case for the Bank of Japan to expand stimulus. USD/CHF is trading above 0.9300 after an advance made yesterday.

AUD/USD dropped below $0.9100 to $0.9060. Australian building approvals slumped by 6.9%, while economists expected growth by 2.2%. The Reserve Bank of Australia Governor Glenn Stevens signaled there is still room for interest rates and the currency to fall. NZD/USD is declining for the second day in a row. The pair’s now testing levels below $0.8000. New Zealand’s building consents also contracted. USD/CAD keeps consolidating in the 1.0285/50 area. Canadian dollar remains near 1-month high as crude oil, the nation’s largest export, remained above $100 per barrel for the 18th day.

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