The US is on holiday for independence day and price action in major FX markets remains lacklustre. The Dollar, Euro and Swiss Franc have weakened marginally while Sterling is treading water at a multi-month low. Eurozone retail sales contracted 0.3% mom in May, following on from a similar fall in April.
Weak data for Eurozone consumer demand have only added to the dovishness currently prevailing in the rates markets, with US, German and other European bond yields still under downward pressure. This has in turn helped fuel global equity markets, with the S&P 500 yesterday closing at a record high for the third consecutive session. It remains to be seen whether FX markets will come to life tomorrow with the key release of US labour market data for June.
