U.S. Market Update

The US morning saw a limited range of price action due to the Independence Day holiday. The EUR/USD consolidated around the 1.4000 level.

The CHF did see a bit more action as the SNB reportedly 'check rates' to remind the market of its intent to maintain a soft Swiss currency. EUR/CHF tested the 1.5250 level on the renewed jitters of additional currency intervention but drifted back below the 1.52 handle as no evidence was confirmed of any SNB action.

The GBP was weighed upon sentiment that the BOE's Asset Purchase Facility (APF) has yet had an impact for a sustainable economic recovery as the £125B limit is approached. GBP/USD off earlier lows of 1.63 but thus far the upside retracement has been limited in the session.

The reserve currency issue will continue to impact the price action of the dollar. An India Gov't Advisor commented that he would not be surprised if Rupee basket was revised to reduce role of USD. He added that the USD should be weaker and Chinese Yuan and Japanese Yen should appreciate to counter imbalances.

The European bourses end the day mixed. FTSE 100 Index unchanged at 4,234; Euro-Stoxx 50 index down 0.1% at 2,367; Dax lower by 0.5% at 4,695 and the CAC 40 Index down 0.25% at 3,108.

NYMEX Aug crude futures in electronic trade was unable to hold onto earlier gains and ended the European day at 66.01, down 72 cents.

European Fixed income maintaining a tight range in the session. Sept Bunds off 10 ticks at 121.55 and not too far away from recent 6-week high. Gilts up 7 ticks at 117.66

Events: German Bundestag (lower house) approved 'bad bank' bill and now goes on to Bundesrat (upper house) for vote on July 10th. The Measure aims to relieve banks by enabling them to shift billions of euros in troubled assets off their books

Trade The News Staff
Trade The News, Inc.

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