email:  
 
 
  
 

Monday, July 10, 2006

FX Closing Comments

The Dollar kept its firm posture throughout the day, in the absence of any substantial new U.S. data. The week does, however, contain some important figures, namely the trade (May) and budget (June) deficit figures, and June retail sales figures. There is also a Bank of Canada meeting tomorrow morning, which is a difficult call. If rates are raised there may be a strong bullish reaction, as consensus opinion is calling for a pause. On Thursday the Bank of Japan meets and that too is a tough call, with many of the view that the era of free money will be ended and rates hiked to .25% for the first time in 5 years.