Forex Major Currencies Outlook (July 22, 2013)

There were no reports released from the US then, as the selloff was possibly a result of profit-taking ahead of the weekend’s G20 Summit. There were no surprises from the actual meetings, although the leaders did pledge to push for a banking union in Europe. For today, only the existing home sales is up for release from the US and it is set to show a reading of 5.27 million, up from the previous 5.18 million figure. 

EUR 

The euro edged higher against its counterparts on Friday as German PPI came in better than expected. Producer prices in euro zone’s largest economy stayed flat instead of falling by the estimate of 0.2%. This was also better than the previous reading of -0.3%. However, Spain posted a huge decline in house prices for the past quarter as the HPI showed a reading of -2.4%. There are no reports due from the euro zone today. 

GBP 

The pound made some gains against the Greenback on Friday, pushing GBP/USD closer to the 1.5300 handle. Public sector borrowing in the UK was higher than estimated, as the actual reading showed a 10.2 billion GBP deficit. On top of that, the previous month’s report was revised to show a larger public deficit of 12.4 billion GBP. There are no reports due from the UK today. 

CHF 

The franc managed to extend its wins against the US dollar on Friday, as there were no reports released from both the US and Switzerland then. USD/CHF edged below the .9400 handle and appears to be headed lower for the week. There are no reports due from Switzerland today. 

JPY 

The yen edged lower against its counterparts on Friday but managed to recover in today’s Asian session as Japanese Upper House elections showed that Prime Minister Abe’s party is set to take majority of the seats. All industries activity index printed a 1.1% increase, lower than the estimated 1.3% increase. The previous figure was also revised lower. There are no reports set for release from Japan today. 

Commodity Currencies (AUD, NZD, CAD) 

The commodity currencies moved mostly sideways on Friday but managed to end a little higher against its lower-yielding counterparts. Canadian core CPI showed a 0.2% decline while the headline CPI came in below expectations and printed a flat reading. No reports are due from the comdoll economies today. 

By Kate Curtis from Trader's Way