Forex Major Currencies Outlook (June 28, 2016)

However, a lot of consolidation was seen for most dollar pairs as market participants waited for more clues. Data from the US economy was weaker than expected, with both the flash services PMI and goods trade balance missing expectations. The US final GDP reading for Q1 is due today and an upgrade from 0.8% to 1.0% is expected. 

EUR

The euro trailed the pound in sliding against its forex rivals, as a slowdown in the UK would also have repercussions on the euro zone economy. The EU Economic Summit is scheduled today but ECB head Draghi and Fed Chairperson Yellen won't be attending.  

GBP

The pound resumed its slide across the board after Fitch and S&P announced downgrades to the UK credit rating, citing uncertainties from the Brexit and potential declines in trade, investment, public finances, and political continuity. UK CBI realized sales data is due today but traders are likely to focus on Brexit-related updates. 

CHF

The franc was also in a weak spot following the SNB's decision to step in the currency markets. Although the franc is usually treated as a safe-haven in the European region, traders are hesitant to buy up the Swiss currency in anticipation of additional SNB intervention. 

JPY

The yen sprang back to life in the latter trading sessions as risk aversion continued to dominate price action. There were no reports out of Japan recently and none are due today, although talks of intervention and stimulus could also prevent the yen from rallying further. 

Commodity Currencies (AUD, NZD, CAD)

The comdolls gave up ground on risk aversion but managed to limit their losses thanks to rising gold and silver prices. There were no reports out of the comdoll economies yesterday and none are due today, keeping risk sentiment as the main driver of price action. 

By Kate Curtis from Trader's Way