FX Closing Comments

The Dollar was surprisingly firm today, despite a record trade deficit. Seems traders took comfort in the fact that the data had imporoved, if you factored-out energy imports. As is always the case, the full situation will be revealed when the corresponding capital flow data is released next week. Aside from tomorrow's weekly jobless claims, we will also learn the state of the government's finances, which are said to have improved significantly. Friday will bring us June's retail sales figures. The Dollar index was up 57 ticks and the gains were broadly based.