Markets slightly choppy but largely muted.....>

FOREX: Markets slightly choppy but largely muted in holiday-thinned trade

-With US traders taking the day off for Independence Day celebrations, volume

and liquidity has thinned, leading to slightly erratic, but contained, price

action. CNH and CNY improved for a second session, with markets speculating

further that state banks may be selling USD to cool the upward momentum of

USD/CNY. USD/CNH broke below, and holds below, the Cnh 6.65 mark at writing.

-SEK's the best performer in G10 today for the second consecutive session.

Yesterday's hawkish Riksbank decision still dictating trade, but a strong

services PMI number also helped USD/SEK briefly break the 50-dma on the way

lower.

-GBP/USD was boosted back into positive territory courtesy of the best Services

PMI number since October, holding above $1.32 as EUR/GBP pressed through the

200-dma at Gbp 0.8822.

-CAD and EUR are the weakest so far, but both sit well within recent ranges

ahead of risk events later in the week, namely the FOMC minutes and Friday's US

payrolls.