Forex - Dollar steady on lower US Consumer Confidence

The Canadian dollar fell against the U.S. currency on Tuesday as lower U.S. consumer confidence data for June dampened hopes for an early economic recovery, and pushed the market toward safer havens. Sterling reached an eight-month high against the dollar on Tuesday due to surprisingly strong UK house price data, but its gains fizzled out after a moderating decline in U.S. home prices which later boosted the U.S. currency. Market was volatile on the last day of the quarter and half-year, and analysts said corporate demand to buy and sell the dollar for last-minute book keeping purposes was driving broader currency movements. The Dollar steadied overnight, holding gains made the previous day after an unexpected fall in U.S. consumer morale cooled optimism about an economic recovery, prompting investors to seek the safety of the greenback. EURUSD has traded even lower this morning on the back of an FT article rehashing the UK’s bad GDP result yesterday. EURUSD traded in a range of 1.4000-1.4054 and USDJPY in a range of 96.17-96.99 as volatility continues to ease. The Yen edged down against the dollar after the news but the market's reaction was subdued overall as investors decided that it offered no surprise. As the BOJ's closely watched tankan survey has passed, investors now await the U.S. government's high-profile monthly employment report. The New Zealand dollar was around 1 percent lower this morning as weaker stock markets and soft U.S. consumer data prompted investors to trim their exposure to risk and high yield currencies. Kiwi resumes local trading around $0.6450 level after retreating from a near one-month high of $0.6550 the previous day. With the ECB and payrolls out tomorrow, the market may choose to tread cautiously and we expect this to remain the dominant theme today.