FX Closing Comments

FX markets were extremely tame today with hardly any movement at all in the major pairs. Although existing housing figures for May were released early in the session, markets did not move an inch, as traders wait on the Fed. For the record, existing home sales slid 1.2% in May to a 12-month total of 6.670m. Baring any outside occurrences overnight, tomorrow too looks set to be another slow day, with no new data on the U.S. calendar. In Japan, however, retail sales figures for May are on tap. These numbers are in many ways comparable to the U.S. housing numbers, in that they are often seen as a proxy for underlying growth. The stability of Japanese retails sales is a key barometer of the strength or sustainability of the recent turn-around. As the Bank of Japan is known to be actively debating the timing and size of their 1st rate hike in 5 years, tonight's numbers will certainly carrying extra weight.