July 21, 2016: The JPY is the strongest. The NZD is the weakest
The ECB kept rates unchanged. The Draghi hour or so press conference will commence at 8:30 AM ET/1230 GMT. The snapshot of the strongest and weakest shows that the JPY is the strongest the NZD is the weakest. The NZD is lower on the back of increased expectation for a RBNZ rate cut. The early release of the economic outlook said additional easing was likely and that is all the market needed to mark down the kiwi. The USDJPY made its way above the 107 level early in the Asian Pacific session but tumbled after the UK Retail Sales came in weaker- sending GBPJPY (down 0.77%) tumbling and dragging the JPY pairs with it. The NZDJPY was also marked lower (down 1.30% from yesterday's close)
Looking at the ranges and changed for the day, the EURUSD remains contained in below average range. The USDJPY has biggest trading range after the failed break above the 107.00 level failed.
Draghi will be the focus. The Philadelphia Fed Manufacturing Index is expected to come in at 4.5 vs 4.7 last month. Initial employment claims are expected to edge up to 265K vs 254K last week. The 4-week MA has been moving lower of late (stronger employment of course). Canada Wholesale sales fro May are expected to rise 0.2% vs 0.1% last month. These releases come out at 8:30 AM along with Draghi headlines.
At 9:00 AM the US home price index from the FHFA (federal Housing Finance Agency) are expected to show a May gain of 0.4%. The Existing Home sales are expected to come in at 5.48M vs 5.53M. at 10 AM. The Conference Board Leading index will also be released with expectations of 0.2%.
