Daily Forex Fundamentals – July 4, 2013

What’s on the Economic Horizon

BOE rate statement on tap
ECB expected to keep monetary policy as is
U.S. celebrates bank holiday

U.S. Dollar (USD)

After several days of wins, the Greenback took a nasty turn and fell against most major currencies yesterday. The U.S. Dollar Index that measures the strength of the Greenback with respect to a basket of foreign currencies declined to 83.67 from 84.05. Read more…

Euro (EUR)

The euro gave the markets quite a show as political turmoil in Portugal set off fireworks on the charts. The shared currency sold off sharply in the London session but was able to recover later in the day, thanks to a sudden drop in Portuguese bond yields. While EUR/USD finished 37 pips higher, EUR/JPY ended 65 pips lower. Read more…

British Pound (GBP)

Oh yeah! There’s nothing like strong U.K. data to get the pound fired up. GBP pairs sharply traded higher yesterday following the services PMI report. GBP/USD finished the day 122 pips higher at 1.5276 while GBP/JPY bounced off its intraday low of 151.25 to close the day at 152.55. Read more…

Japanese Yen (JPY)

After serving as the market’s whipping boy for several days, the Japanese yen surprised the markets yesterday by erasing some of its losses. USD/JPY began the day at 100.65 but closed the New York session at 99.86. Meanwhile, EUR/JPY started at 130.59 but ended the day at 129.94. Read more…

Canadian Dollar (CAD)

The give-and-take on USD/CAD continued as the Loonie bounced back to reclaim control of the pair. After losing ground to the Greenback on Tuesday, it retaliated and forced the pair to end 39 pips lower at 1.0510. Read more…

Australian Dollar (AUD)

While other major currencies made significant advances over the Greenback, the Aussie was unable to follow suit and actually posted losses. The disappointing result of the retail sales report seemed to be the cause, leading to a 76-pip decline in AUD/USD for the day. Read more…

New Zealand Dollar (NZD)

Without any economic data on tap, the Kiwi spent all of yesterday’s trading rangin’ like a power ranger. NZD/USD was still stuck in a consolidation, finding resistance just below the .7800 handle. However, the comdoll did manage to sneak a small win from the dollar when the pair closed 25 pips above its opening price at .7770. Read more…

Swiss Franc (CHF)

Finally! After days and days of losing, the franc showed signs of life in yesterday’s trading! USD/CHF closed lower for the first time in seven days, finishing the day 39 pips below its opening price at .9471. Read more…

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