Greenback Remains Weak, Stocks Retreat

USD index remains near the minimum of ten months. 10 year yield fell -0.046 and settled at 2.263. Stocks improved with NASDAQ and S&P 500 reached maximums of 6344.31 and 2460.61. The Pound declined due to negative Consumer Price Index report. Mark Carney prefers standing pat. Maybe, the data could prompt Bank of England on a rate hike. Euro is sustained. Soon, European Central Bank will declare its decision concerning policy tightening. Recent data from ECB indicated that in the third quarter, Eurozone banks will extend lending. Bank of Japan should announce its rate as well. But, considering the fact that new member Goushi Kataoka opposes changes in the policy, Bank is likely to stand pat.

GBP/CHF’s strong increase from 1.2239 has a corrective nature and it might have finished at 1.2636. Larger decline should head towards 1.2239. Breach in that place will prolong the intact fall from 1.3067 and align a test on the minimum of 1.1635. The cross is bounded under 38.2% retracement of 1.5570 to 1.1635 at 1.3138 long term fibonacci level. Price behavior from 1.1635 is a correction. Medium term prognosis remains bearish as the downtrend from 1.5570 must enlarge.

Australian Westpac leading index fell -0.1% mom in prior month. Canada will announce manufacturing shipments. The United States will publish housing starts and building permits.