Forex Major Currencies Outlook (July 29, 2013)

For today, the pending home sales figure is up for release and a 1.1% decline is expected. A larger than expected drop could be very negative for the dollar, although traders might be hesitant to take large dollar positions ahead of the FOMC statement and GDP release on Wednesday. 

EUR 

The euro consolidated against the dollar on Friday, as there were no reports released from euro zone then. The euro zone schedule is still empty again for today, which suggests more quiet trading for EUR/USD. The main event for the euro this week is the ECB rate statement scheduled during the latter half. Until then, euro traders might refrain from pushing the shared currency in a particular direction. 

GBP 

After the volatile behavior midweek, GBP/USD stayed inside its ranges on Friday as there were no major reports from the U.K. then. Only medium-tier reports, such as mortgage approvals, net lending to individuals, and CBI realized sales are due from the UK today. Strong data could provide support for the pound while weak reports could undermine its strength. 

CHF

The franc consolidated against the dollar on Friday but USD/CHF selling pressure still appears strong. The pair is on track to test the support around the .9200 major psychological level at the moment. There are no reports up for release from Switzerland again today, which suggests that USD/CHF could stay in consolidation. 

JPY 

The yen continues to enjoy support from improved Japanese data. The Tokyo core CPI showed a 0.3% uptick as expected while the national core CPI printed a higher than expected 0.4% increase in price levels. Earlier today, Japan released its retail sales figure and showed a 1.6% increase, close to the consensus of 1.7%. More reports from Japan, such as the household spending and industrial production figures, are due in the upcoming Asian session. 

Commodity Currencies (AUD, NZD, CAD)

Comdolls stayed in consolidation on Friday, as though waiting for more clues before resuming their recent action. Only the building consents data is due from New Zealand later today and it is expected to show another positive figure. 

By Kate Curtis from Trader's Way