Sterling break a new record

Poundsterling breaks a 26 six years highest record against USD after the US ISM manufacturing data. Although US manufacturing data showed increasing to 56 from 55 last month, but market still support for Sterling to break a new high record according to the expectation on rise of the interest rate which date on July,5,2007

AUD analysis

AUD reached the target of 0.8530 this morning. The underlying trend is still very much bullish. Look to buy on dip at 0.8450, target at 0.8680.

US depends on ISM Manufacturing

As for today, light data in the morning may keep the currency trading in a range. US ISM manufacturing data will be the only key data for the US.

JPY Tankan report showing not good result

Slightly worse-than-expected Japan Tankan report didn’t bring too much volatility to the market. Carry trades is still intact.

The Down of USD

The Dollar lost the ground across the board last Friday except for the Canadian dollar. The Canadian dollars shoot up to 30-year highs due to the stop loss triggered. However, the Canadian dollar rebounded back to 1.0660 from 1.0470 low after a weaker than expected GDP data.

JPY Fundamental

The JPY weakened slightly after data showed that Japan’s nationwide core CPI drop 0.1 percent in May, reinforcing market expectation that the BOJ will only raise rates in gradual manner, thus, fueling the carry trades to begin all over again.

US Fundamental

The Dollar was a little changed yesterday after the FED announced its decision to keep interest rate unchanged as expected. The statement following was seen as a little hawkish as it repeated worries about inflation pressures but failed to mention concern regarding U.S. housing market or slow down in growth.