Currency markets stepped off the playing field today in Asia to take a well deserved breather after the dynamic moves that they had earlier in the NY session. Markets seemed to drift directionless and in smaller ranges today as traders looked for new clues as to what positions to take. For the most part, the dollar and yen were unchanged for the day as risk was not a major factor with Asian stocks trading softer on the day. EUR/USD dropped as low as 1.4140 and later made a high just near 1.4195 but for the day was pretty close to unchanged near 1.4170 going into London. The moves were a bit bigger in the GBP/USD pair as an early low near 1.6390 was erased by a high short of 1.6470. This pair as well looked to end the session unchanged near 1.6430. After a 94.55 open, USD/JPY dropped almost 50 pips to 94.20 for the trade day. The Yen crosses showed no emotion for the day, all mostly unchanged for the Asia session. The Kiwi dollar dipped early due to poor Building Consents, but regained ground after NBNZ Business Confidence came out better than last month, thus boosting the pair back near opening levels. Aussie dollar stayed unchanged.

All in all, a very quiet day, but that quiet can easily be broken tomorrow with US Beige Book and Durable Goods data due. As well early in Asia tomorrow we will have the RBNZ rate decision which is widely expected to remain unchanged at 2.5% but has the propensity to move the market.

Upcoming Economic Data Releases (London Session) prior expected

7/29/20096:45FR Producer Prices (MoM) JUN -0.30%-0.10%
7/29/20096:45FR Producer Prices (YoY) JUN -7.80%-8.60%
7/29/20098:00EC ECB Publishes Bank Lending Survey29-Jul
7/29/20098:30UK Net Consumer Credit JUN 0.3B 0.3B
7/29/20098:30UK Net Lending Sec. on Dwellings JUN 0.3B 0.6B
7/29/20098:30UK Mortgage Approvals JUN 43.4K 47.0K
7/29/20098:30UK M4 Money Supply (MoM) JUN F -0.20%- -
7/29/20098:30UK M4 Money Supply (YoY) JUN F 14.20%- -