FX Closing Comments

FX pairs experienced a fair amount of volatility, but the Dollar remained largely unchanged in most pairs. The Sept. Dollar Index was down 13 ticks on the day. The big mover was the Canadian Dollar, which sold-off quickly, though moderately, when it was announced that the Bank of Canada had paused on rates. The bank's commentary was also fairly dovish and predicted an energy related slowdown heading into the 2nd half of the year. Tomorrow the emphasis will shift to the U.S. trade deficit and the number for May is expected to be -$65b, based mostly on higher fuel prices. On the other side of things, the budget deficit is expected to have shrunk dramatically.