Daily Forex Review: Trading Off to a Shaky Start – July 7, 2014

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Daily Forex Review: Trading Off to a Shaky Start - July 7, 2014

The US dollar continued to give way to most of its major forex review counterparts on Friday, although the losses were subdued as most traders were off on a Fourth of July holiday. There were no reports released from the US economy then and there are still no reports up for release today.

The euro started the week on a bleak note, similar to the way it ended the previous trading week. Draghi’s dovish remarks continued to weigh on the euro, as the ECB head mentioned that they are ready to ease further if necessary. He also mentioned that the ECB would meet less frequently and that they would publish the minutes of their deliberations. Only the German industrial production and Sentix investor confidence report is due today.

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The pound managed to hold on to most of its recent wins to the dollar and the yen on Friday, despite the lack of data from the UK. There are no reports up for release from the UK today but traders could be pricing in expectations of hawkish remarks in today’s BOE interest rate decision.

The franc lost further ground on Friday, as it followed the euro’s selloff to the rest of its major forex counterparts. The Swiss jobless rate released today showed no change from the previous 3.2% reading, providing a bit of support for the franc. SNB foreign currency reserves are due today and this should give market watchers an idea of whether or not the Swiss central bank could afford to intervene in the markets if needed.

The yen had a mixed performance on Friday although it ended the day generally weaker to the dollar. There have been no reports released from Japan then and none are due today, leaving the yen at the mercy of market sentiment for the most part.

The comdolls weakened on Friday, as traders lost their appetite for risk towards the end of the week. There have been no reports to give these currencies a boost as well. For today, Australia’s AIG construction index marked an improvement from 46.7 to 51.8 while its ANZ job advertisements picked up by 4.3%. Canadian building permits and Ivey PMI are due today.

To contact the reporter of the story: James Brennan at james@forexminute.com