FX Market Becalmed ahead of US CPI, ECB Meeting

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Rates as of 0500 GMT

Market Recap

Hibernating in June? The currency market was nearly frozen yesterday, with the tradeweighted indices all remaining within a 0.1 range of the previous days level.

Volatility isnt at a record low by any means. It just seems that way after the big excitement last year this time. Im not sure Id want to repeat that episode, however.

The doldrums are widespread all major pairs are below their average vol.

The calm was widespread the SP 500 was down a mere 0.08 in belowaverage volume while the US 10year bond yield was up 1.5 bps.

Markets are just treading water ahead of Thursdays US consumer price index and the European Central Bank meeting.

Todays market

Note The table above is updated before publication with the latest consensus forecasts. However, the text charts are prepared ahead of time. Therefore, there can be discrepancies between the forecasts given in the table above and in the text charts.

I reviewed the German industrial production yesterday.

The ZEW Survey of economists, analysts, and other halibuts of the financial markets bottomfeeders who make a living off scraps that fall from the savers investors above is expected to show continued improvement, especially in the current situation index, which is forecast to be up 12.6 points from the previous month. That compares with an expected rise of just 1.6 points for the expectations index. In other words, the recovery is now pretty fully discounted and people are…

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