[DLR/YEN] holds above the earlier dip of 105.83 that has been led by the Asian sales and stop triggers around 105.90-85 (buy stops tripped on rise through the level overnight). Quiet condition is expected to continue for the rest of the session, but rebounds at the 106's are getting lower. 03:25 GMT – The CHF initially appreciated against the USD during the early Asian session yest as risk aversion held sway over the market with the [USD/CHF] reaching a low of 1.0138 which was right around the 50% retracement of the move from 0.9645 to 1.0625. However, US ISM data coming in above the 50% level gave the Greenback a prop sending the pair to an o/n high of 1.0230. Data release in Switzerland saw June PMI survey receded to a three-year low at 54.9 vs 55.7 in May. There was market chatter that SNB may be forced to tighten interest if the ECB does so given that Swiss inflation stands at 2.9% above the 2.0% target rate. Buying orders at 1.0170 by a European and selling orders at 1.0245 by a US name will dictate the range this session

Original post by GFT Forex News

The CHF initially appreciated against the USD during the early Asian session yest as risk aversion held sway over the market with the [USD/CHF] reaching a low of 1.0138 which was right around the 50% retracement of the move from 0.9645 to 1.0625. However, US ISM data coming in above the 50% level gave the Greenback a prop sending the pair to an o/n high of 1.0230. Data release in Switzerland saw June PMI survey receded to a three-year low at 54.9 vs 55.7 in May. There was market chatter that SNB may be forced to tighten interest if the ECB does so given that Swiss inflation stands at 2.9% above the 2.0% target rate. Buying orders at 1.0170 by a European and selling orders at 1.0245 by a US name will dictate the range this session

Original post by GFT Forex News

[AUD/YEN] is is buoyant after the better than expected Australia's May retail sales data, and clears the NY highs of 101.27/36 to hit 101.70. The cross is still below the 21D-MA (101.79, up), and its fall through the line on May 9 was quickly reversed through the line on the next business day of May 12, so watch whether the cross can again recover through the line today. 100.60-50 where sell stops have been triggered overnight would be the intraday base today

Original post by GFT Forex News

The thinness of the market due to a holiday in Canada saw the [USD/CAD] trading in a 100 point range from a low of 1.0143 to an o/n high of 1.0240 before finishing the NY session at 1.0223. The Loonie had earlier strengthened against its US counterpart with crude oil remaining at lofty lvels but the Greenback recovered against all the majors following sharply better than expected US ISM manufacturing data which came in above the key 50 boom/bust level at 50.2 vs f/c of a 48.6 read(vs 49.6 prev). The pair continues to trade in a wide 1.0000-1.0300 range with a breakout not likely ahead of the US long weekend. Bids at 1.0175 by Canadian importers will provide support and offers at 1.0250 by leveraged accounts will dictate the range this session

Original post by GFT Forex News

[EUR/YEN] is back to the 167's on the two consecutive days of active Yen sales in NY time. As a result the cross rebounds after the two days of fall through the 21D-MA (166.85, up). 168.00 holds both offers and stops. The NY reactionary high of 167.28 would be the immediate base ahead of bids noted around 167.10-00. A full scale long unwinding looks unlikely to take place unless 165 gives way

Original post by GFT Forex News

[AUST] May building approvals came in at a worse than expected -6.5% m/m vs market consensus of a decline of 3.0% m/m vs 7.8% prev. Total dwelling units fell from 13,308 in April to 12,438 in May. Private sector house approvals fell 1.2% m/m to 8,729 in May from 8.836 in April

Original post by GFT Forex News

[EUR/DLR] continues to dutch roll. Yesterday's price actions of highs and lows from our time are 1.5761/27/78/23/818/770/803/736/827/776 amidst WSJ article, good German retail sales, good US ISM, Israel-Iran tension, higher WTI, US stocks' rebound, etc. ECB's rate hike tomorrow is well priced in, while Ireland's and Denmark's growth results are disappointing. Paulson does not talk much about discussions over FX with Trichet. Offers are noted above 1.5820. 1.5830-50 is noted holding the 1.5850 defence offers as well as stops. Bids are placed below 1.5760. The 21D-MA (1.5597, up) continues to cling to the 90D-MA (1.5600, up)

Original post by GFT Forex News

[AUST] May retail sales rose a higher than expected s/adj 0.7% vs market consensus of a 0.2% rise (vs -0.2% prev). Retail turnover at current prices rose to A$20.24 bln vs A$20.10 bln in April vs A$19.08 a year ago. The strong sales data is likely to dent the RBA hopes for demand to moderate over coming months to stem inflationary pressures and another one or two such heady reading may well see the central bank turn hawkish again

Original post by GFT Forex News

[DLR/YEN]'s NY close above 106.00 has continued for three days, and the last two days' moves especially in NY time are unnatural. We feel some forcible power to lift the pair to the 106's by the end of the day. Main objective is to support the [DJI], and yesterday's Dow's rebound amidst GM's results (bad figure, but taken as better than expected) is also difficult to understand. [NIKKEI-225], despite Dow's modest rise, is down this morning, and lower close has continued for record nine straight days. Also note [PAULSON]'s comments over FX has continued to appear when the Dlr/Yen was falling around the mid 105's, so it appears the authority is trying to bring the Dlr/Yen to the 106's

Original post by GFT Forex News

UK Nationwide house prices continued its downward spiral but coming in slightly better than expected at 0.9% m/m vs f/c of 1.0% while the y/y came in at 6.3% vs f/c of 6.4% gave the market enough reasons to squeeze [GBP/USD] bears as the pair rose from an earlier low of 1.9888 to an o/n high of 2.0008, the first time in 2 months it has gone above the 2.0000 handle. However, equally strong US data gave a prop to the USD which resulted in the pair retreating to close at 1.9941 in NY. Other UK data saw June PMI mfg fell to 45.8 from 49.5 prev giving further evidence of a contraction in the sector. Market players now awaits Thurs PMI services to see if there is further evidence of deterioration. UK PMI construction on tap today. Buying orders at 1.9910 by a M/E name will protect the downside and selling orders at 1.9980 by a US prime will keep the range this session

Original post by GFT Forex News