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The Greenback was able to chalk up small gains against some of its peers even with most traders out on a holiday while Loonie bulls seemed unstoppable in their charge.

  • Canadian manufacturing PMI dipped from 55.1 to 54.7 in June
  • New Zealand GDT auction indicated 0.4% dip in dairy prices
  • Risk-taking slowed on North Korean ICBM test

Major Events/Reports

Risk-off vibes on North Korea’s missile test

It looks like Kim Jong-un is at it again and the Donald ain’t happy about it! North Korea announced that it was able to successfully test-launch an intercontinental ballistic missile (ICBM) that could be aimed at certain parts of the U.S. mainland, particularly Alaska.

Now the hermit kingdom has been conducting these missile tests for the past few months in defiance of U.N. orders, but the latest launch has been more worrisome because the new nuclear-tipped missile had a range of more than 8,000 km, which is a significant leap from their earlier tests.

Although South Korean  President Moon Jae-in assured that the missile was only an intermediate-range type, it was still enough to send jitters in the financial markets since the missile landed in the sea in Japan’s Exclusive Economic Zone – still too close for comfort in the Asian region.

Precious metals ticked higher, led by gold and its safe-haven luster:

  • Gold is up to $1,225.96 per troy ounce (+0.56%)
  • Silver is up to $16.095 per troy ounce (+0.36%)
  • Copper is up to $2.683 (+0.04%)

Another dip in dairy prices

As Fourth of July fireworks and barbecue parties were just getting started, New Zealand held its Global Dairy Trade auction and the results weren’t so festive.

Dairy prices are down 0.4% in the latest auction, following the earlier 0.8% decline and suggesting that the industry might be slowing. Some even speculated that this could result to a downgrade in Fonterra milk payout forecasts later on.

Major Market Mover(s):

CAD

The Loonie was stronger across the board even as crude oil took a slight hit later in the day.

USD/CAD continued to slide from 1.2988 to a low of 1.2914, CAD/JPY advanced from 87.02 to 87.66, EUR/CAD dropped from 1.4761 to a low of 1.4654, and AUD/CAD slipped to .9842.

JPY

The yen edged lower against most of its counterparts, likely due to fresh geopolitical concerns stemming from North Korea’s missile test.

USD/JPY is up from 113.19 to a high of 113.36, EUR/JPY rose to 128.64, NZD/JPY crawled from 82.44 to a high of 82.61 before dropping during the GDT auction, and CHF/JPY is up to 117.21.

Watch Out For:

  • 12:01 am GMT: U.K. BRC shop price index y/y (-0.4% previous)
  • 12:30 am GMT: Australia’s AIG services index (51.5 previous)
  • 2:00 am GMT: New Zealand ANZ commodity prices (3.2% previous)
  • 2:45 am GMT: Chinese Caixin services PMI (rise from 52.8 to 52.9 expected)