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There was a flurry of light repositioning ahead of today's testimony from Fed Chairman Bernanke, but overall recent trading ranges remained intact. GBP was the outlier after the BoE minutes unexpectedly revealed a 9-0 vote for unchanged policy, which drove Cable up from 1.5120 to 1.5246 highs. Read more
Activity in Europe is expected to be muted ahead of today's testimony from Fed Chairman Bernanke. We've already seen a moderate dollar correction by speculative longs and further dollar selling may be restrained from here. The EUR move back over 1.3100 and through 1.3150 has left the balance of risk on higher levels, but there will be zero interest to establish fresh positions. Read more
The dollar traded broadly lower in N.Y. on Tuesday, with slightly hotter headline CPI, and in-line industrial production not having much impact on the greenback. Focus was squarely on position adjustments in front of Bernanke's testimony on Wednesday, which entailed selling back dollars against every major currency. Read more
The dollar was softer during the European morning as longs pared back positions ahead of Fed Chairman Bernanke's testimony on Wednesday. Price action was slow though and even though reasonable sized orders were filled there wasn't aggressive follow through action. Read more
Dollar consolidation continued ahead of Fed Chairman Bernanke's testimony on Wednesday. The highlight in Asia was the RBA minutes from the early July meeting. RBA maintained that the current inflation rate still provided some scope for further easing if needed. Read more
The dollar traded on a mostly easier footing through the N.Y. morning session on Monday, though ahead of Bernanke's House testimony on Wednesday, activity was somewhat muted. Weak ex-auto June sales put a damper on dollar buying early on, resulting in EUR-USD jumping to 1.3050 after failing to make any downward progress under 1.3000. Read more
The dollar firmed up in very quiet European trade. Sentiment started on a positive footing after China Q2 GDP hit 7.5% y/y overnight, which met expectations and is also in line with the government target for growth. Asian stocks rallied, but in Europe sentiment was undermined by Eurozone risks. Read more
The risk backdrop was supported overnight as China Q2 GDP came in at 7.5% y/y, which was in line with expectations. However, after weak export data last week and negative comments from Finance Minister Lou the market was bracing for a weak reading. There was relief in Asia, though the China benchmark index was much stronger than its peers, which only managed modest gains. Read more
FX trade was relatively quiet in N.Y. on Friday, as many dealers took a break from the extreme volatility seen Wednesday and Thursday. The greenback firmed some through the morning, though comments from Fed hawk Plosser later turned stocks and bonds lower, while firming up the dollar. Read more
It was a session of consolidation for the FX majors following the sharp moves on Wednesday and Thursday. USD-JPY traded a tight range close to 99.00. EUR-USD and Cable were weighed by light repositioning as close-to-market stops influenced. The AUD came under pressure following overnight remarks from China finance minister Lou, who said growth would average 7% this year, below the official 7.5% target, which raised expectations that Monday's Q2 GDP would be weaker than expected. Read more
