Forex Major Currencies Outlook (July 30, 2013)

The only major report due from the US today is the CB consumer confidence figure, which is slated to dip from 81.4 to 81.1. The US is also set to print its S&P/CS house price index and possibly show a 12.4% reading.

EUR

EUR/USD’s climb came to a halt as the pair consolidated below the 1.3300 major psychological level. There were no reports released from the euro zone yesterday, which explains the lack of direction for the pair. For today, there are a few medium-tier reports on tap and these are the German CPI, Spanish GDP, and euro zone retail PMI. Be mindful of stronger than expected data that could push EUR/USD higher or weaker than expected results that might trigger a pullback.

GBP

The pound erased some of its previous gains to the dollar in yesterday’s trading, as GBP/USD retreated to the 1.5300 area. CBI realized sales came in better than expected as it improved from 1 to 17, outpacing the consensus at 11, while mortgage approvals missed expectations. The report printed a 58K reading instead of the estimated 60K figure. For today, only the GfK consumer confidence and BRC shop price index are up for release and these aren’t likely to cause a huge impact on pound movement.

CHF

USD/CHF held steady below the .9300 handle in yesterday’s trading since the lack of top-tier catalysts from both the US and Switerland resulted in a range-bound environment. No reports are due from Switzerland again today, which suggests that this pair could be in for more consolidation.

JPY

Japanese data came in mixed, with an improvement in the jobs sector and a downturn in spending. Household spending slipped by 0.4% instead of bouncing back by 1.2% while the jobless rate dipped from 4.1% to 3.9%, better than the estimate of a 4.0% reading. Meanwhile, industrial production also missed the consensus and showed a 3.3% decline while the previous month’s figure was revised down to show a 1.9% drop. Manufacturing PMI and average cash earnings are due from Japan today and this could dictate the yen’s movement for the rest of the day.

Commodity Currencies (AUD, CAD, NZD)

The comdolls gave up some of their recent gains, as AUD/USD fell from the .9300 area while NZD/USD slipped to .8000. USD/CAD, however, was mostly stuck in consolidation. Australian building approvals were weak, as the figure showed a massive 6.9% decline. Similarly, New Zealand printed a weaker than expected building consents report. Inflation reports, such as RMPI and IPPI, are up for release from Canada today.

By Kate Curtis from Trader's Way