An inside day for currencies with little......>

FOREX: An inside day for currencies with little action of note

-Price action was contained, quiet and non-descript on Tuesday, reflecting the

data calendar as markets reflected on recent price action. Early weakness was

observed in EUR crosses following poorer-than-expected German ZEW survey,

pressing EUR/USD to the day's lows of $1.1690 just ahead of the US open. This,

however, was reversed by the close, helping EUR/USD climb back above $1.1750.

-The DXY looks to close in very minor positive territory with the 50-dma at

93.933 providing initial support. Market still looks to the Fed's semi-annual

monetary policy testimony on Friday for direction.

-JPY was weak for a second session, with USD/JPY targeting the mid-May highs of

Y111.40 to confirm a break of the recent range, but mediocre equity performance

hindered any further progress.

-Elsewhere, GBP recovered slightly from yesterday's politically-induced

weakness, but the week's $1.3363 highs didn't come under threat at any point.

-Attention turns to Japanese and US PPI numbers and the Bank of Canada rate

decision, expected to result in a 25bps hike to 1.5%.