Greenback Slid Broadly

6/19 19:50 Japan April All Industry Activity Index (exp 1.0%, prev –1.4%)
6/19 19:50 Bank of Japan Monetary Policy Meeting Minutes for May
6/20 04:30 Bank of England Minutes
6/20 08:30 Canada May Leading Indicators (exp 0.5%, prev 0.4%)
6/20 08:30 Canada April Wholesale Sales (exp 0.3%, prev 1.9%)
6/20 10:00 US Treasury Secretary Paulson Testifies on the International Financial System
6/20 11:30 US Fed Yellen, Geither Speaks

The dollar edged lower against the euro and sterling as US bond yield premiums over a comparable Japanese and euro zone’s narrowed down. It should be noted that this linkage between yield spreads and the dollar strength is just temporary and not likely to persist. Fundamental factors, such as the Fed rate outlook and rising oil prices, will still be the primary driver of the dollar.

US housing starts report released today showed a 2.19% decline to 1474k in May. The building permit increased from 1457k to 1501k, indicating some strength in future construction. The market is looking for more poor housing data in the coming months.