USD 
EUR
The Kansas Fed Composite Index and Manufacturing Index came in as expected, which wasn't a huge surprise, but it's what the ECB's Simkus said that caught my attention - $100 oil will have repercussions on inflation, and honestly, it's pretty obvious. The inflation risk has increased, and it seems like the ECB is taking a wait-and-see approach, which is fair given the current situation. If you were watching the majors, you'd have noticed they're all within a tight range, not doing much of anything.
And that's pretty much the story of the day - not a lot of action, but some interesting comments from the ECB. The USDCAD found a bottom on Monday, just above that key psychological support at 1.4000, which was pretty wild, and it's been trading steadily since then. According to ForexLive, the USDCHF has been grinding steadily higher throughout July, adding another modest gain today, and it's up about 0.21% after recovering from an early European-session dip. The USD is little changed, and the three major currency pairs - the EURUSD, USDJPY, and GBPUSD - are all within 0.06% of their opening levels, which is pretty flat.
But what's interesting is that the USDJPY closed at 163.7230, which is basically unchanged, and the NZDJPY closed at 94.8679, also unchanged. The USDMXN closed at 17.4599, which is flat as well. It's like the market is just waiting for something to happen, and it's not really reacting to any of the economic data or news. FXStreet pointed out that the S&P Global Composite PMI came in as expected, but it didn't really move the market.
So, what's next? Well, we've got a pretty quiet weekend ahead of us, but I'm expecting some volatility to pick up next week. The ECB's comments about inflation risk have got me thinking that we might see some movement in the euro, and if you're trading the USDJPY, you should keep an eye on the yen - it's been pretty quiet lately, but that can change quickly. Anyway, that's it for today - not a lot of action, but some interesting comments from the ECB to think about over the weekend.
Fed Fears Drive Volatility
And that's pretty much the story of the day - not a lot of action, but some interesting comments from the ECB. The USDCAD found a bottom on Monday, just above that key psychological support at 1.4000, which was pretty wild, and it's been trading steadily since then. According to ForexLive, the USDCHF has been grinding steadily higher throughout July, adding another modest gain today, and it's up about 0.21% after recovering from an early European-session dip. The USD is little changed, and the three major currency pairs - the EURUSD, USDJPY, and GBPUSD - are all within 0.06% of their opening levels, which is pretty flat.
But what's interesting is that the USDJPY closed at 163.7230, which is basically unchanged, and the NZDJPY closed at 94.8679, also unchanged. The USDMXN closed at 17.4599, which is flat as well. It's like the market is just waiting for something to happen, and it's not really reacting to any of the economic data or news. FXStreet pointed out that the S&P Global Composite PMI came in as expected, but it didn't really move the market.
So, what's next? Well, we've got a pretty quiet weekend ahead of us, but I'm expecting some volatility to pick up next week. The ECB's comments about inflation risk have got me thinking that we might see some movement in the euro, and if you're trading the USDJPY, you should keep an eye on the yen - it's been pretty quiet lately, but that can change quickly. Anyway, that's it for today - not a lot of action, but some interesting comments from the ECB to think about over the weekend.