Daily FX Trading Update: RBNZ to Cut Interest Rates? – July 22, 2015

Daily FX Trading Update: RBNZ to Cut Interest Rates? - July 22, 2015

The US dollar gave back some of its recent gains to its forex rivals, as traders probably booked their profits off their long positions. There have been no reports released from the US economy then while today only has the existing home sales figure on tap. The report could show an increase from 5.35M to 5.40M, which might be enough to renew dollar demand.

The euro managed to pull up from its recent dive against the dollar and resume its recovery against some of its peers. There have been no major reports out of the euro zone yesterday and today only has the low-tier Italian retail sales report due. The Greek parliament is set to pass legislation on the concrete austerity measures to be implemented within the day.

The pound weakened to most of its currency counterparts in recent trading sessions, as traders reduced their holdings ahead of today’s event risk. BOE minutes are due and the officials are expected to have voted unanimously to keep monetary policy unchanged. However, some believe that hawkish members might’ve voted to hike rates once more, as upbeat remarks could allow the pound to regain ground.

The franc was also in a weak spot yesterday, as there were no reports to give the currency a boost. Today is also an empty slate in terms of Swiss economic data, which means that franc pairs could take their cue from the euro or overall market sentiment.

The yen returned some of its recent wins when risk appetite seemed to improve yesterday. There have been no reports out of Japan then and today has the all industries activity index on tap. A 0.5% decline is eyed, following the disappointing read from the tertiary industry activity index last week.

Commodity Currencies (AUD, NZD, CAD)
The comdolls were able to bounce back in recent sessions, as traders might’ve trimmed their short positions ahead of the event risks. Earlier today, Australia’s CPI came in line with expectations of a 0.7% increase. Later on, the RBNZ will announce its interest rate decision, with some analysts expecting to see a rate cut and more dovish remarks.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com