July 14: Asian session
The market volatility is low with all the currencies stuck in tight ranges amid low trading volumes. Markets stay calm, waiting for the Fed’s Yellen testimony at Congress on Tuesday and Wednesday for some news on the Fed’s monetary policy outlook.
USD/JPY opened the week with a gap up and strengthened by 10 pips to 101.40, recovering from the last week’s low of 101.06. The dollar index edged slightly higher to 80.20, rising from a two-month low of 79.75 on July 1.
The MSCI Asia Pacific Index added 0.6% in the session. AUD/USD strengthened to the $0.9400 mark. Meanwhile, the RBA Governor Glenn Stevensreiterated that some investors may be underestimating the riskof "a material decline" in the currency at some point. NZD/USD touched $0.8820, but retraced some gains.
Monday’s economic calendar is thin – only the euro zone will release industrial production figure and the ECB president Mario Draghi will deliver a speech. EUR/USD consolidates in the $1.3597/3607 narrow range, while GBP/USD – in the $1.7110/20 range.