ForexGen | Daily Major Currencies Outlook

U.S. Dollar
Trading (USD) traded in a tight range against most of the majors, buoyed by continued weakness in Oil but hurt as stocks weakened. Speculation that government backed Fannie Mae and Freddie Mac would have to be bailed out cast a shadow of the banking sector. In the U.S. share markets, the NASDAQ was down 35 points (-1.45%) and the Dow Jones was down 180 points (-1.55%). Crude Oil closed down $0.90 ending the New York session at $112.87 per barrel. Looking ahead, July Building Permits are forecasted at .97M and Housing Starts at .96M. Also released PPI expected at 0.6% in July with a Core reading of 0.2%.

The Euro
(EUR) made day highs as storms threatened Oil platforms in the Gulf of Mexico sending Oil above $115 per barrel. As the storms look set to miss, Oil retreated taking the Euro along for the ride. A blow out in Eurozone Trade Deficit by 3 Billion in June also weighed on the single currency. Overall the EUR/USD traded with a low of 1.4645 and a high of 1.4768 before closing the day at 1.4700 in the New York session. Looking ahead, German PPI is expected at 0.7% in July along with the August ZEW survey seen improving slightly to -62.

The Japanese Yen

(JPY) was relatively unchanged against the USD but gained against most currencies as weak US banking stocks sparked further Yen Buying. Overall the USDJPY traded with a low of 109.96 and a high of 110.55 before closing the day around 110.10 in the New York session. Looking ahead, Bank of Japan Rate announcement and Press Conference widely expected to hold at 0.5% on weakening growth outlook.