Opening Comment 07.22
Meanwhile, the USD, Yen and Swissie were big winners on the day due to their safe-haven status. Also seen weighing on the Euro in Wednesday trade was more profit taking on longs ahead of the European stress test results, and rumors that the SNB was in the market selling heavy amounts of Eur/Usd and Eur/Chf to rebalance their reserves after aggressively selling their currency on intervention action in previous months.
Looking ahead, RBA foreign exchange transaction data is due at 1:30GMT, along with NAB business confidence. New Zealand ANZ consumer confidence then follows at 3:00GMT, with Japan’s all industry activity index (-0.4% expected) shortly after at 4:30GMT. Key releases in European trade include German PMI at 7:30GMT, and Eurozone PMI at 8:00GMT. In the UK, retail sales (0.6% expected) are the key data to watch at 8:30GMT, while Eurozone industrial new orders (-0.1% expected) cap things off at 9:00GMT. It will be interesting to see if the USD can retain its bid tone into Thursday trade, or if market participants begin to once again sell the buck on a decoupling mentality following the latest downbeat Bernanke testimony.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail email@example.com and you will be added to the " " list.
If you wish to discuss this topic or any other feel free to visit our Forum page
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.