Summary

US equity markets were closed on 5 July for the Independence day holiday. Volume was light in most capital markets and should return to normal in the sixth

Tomorrow's Events

AUD	4:30	RBA Interest Rate Decision			4.5%
CHF	7:15	Swiss CPI	June	.1%	-.1%
CAD	12:30	Canada Building Permits	May	-.4%	5.4%
USD	12:30	US ISM Services	June	55	55.4

Trading Opportunities

USD/CHF

The Swiss Franc continues to strengthen as the SNB has made it clear that it will not interfere in the currency markets. The Swiss economy continues to strengthen, but inflation now seems to be in check. Technically, the 20-day moving average of the USD/CHF has now crossed below the 50-day moving average of the USD/CHF which should continue to put pressure on the currency pair.

   

GBP/USD

The Bank of England is holding its regular policy meetings on Thursday interest rate hikes have already been discussed at the June MPC meeting. Andrew Sentence voted for an immediate monetary policy tightening last month and policy remarks since the meeting suggest that his bias to raise interest rates could well be maintained this month. While acknowledging a tighter fiscal stance, Sentence notes that the recent budget unveiled a fiscal tightening broadly in line with expectations and with most of the tightening coming in the outer years. A strong fiscal backdrop should continue to help the pound.