Dollar gains vs all currencies as Yellen repeats her view

•     Dollar gains vs all currencies as Yellen repeats her view

–    Yellen says FOMC intends to hike this year as long as the data cooperates

–    Says she’d be willing to hold a press conference if they hike at a meeting with no press conference scheduled = Oct, Jan now possible

–    Fed funds rate expectations ease nonetheless as US manufacturing stagnates

–    Nonetheless USD up against all currencies; commodity currencies particularly weak as oil, copper, milk prices fall

•     Bank of Canada cuts rates 25 bps as expected; CAD weakens

–    Cuts growth forecast, leaves door open for further easing

•     NZD falls on 9^th consecutive fall in milk prices, below-target inflation

•     Greek parliament passes austerity measures needed to win bailout

•     Today:

–    Eurozone: ECB policy board meeting is the highlight. No change in policy likely; focus will be on what Draghi says in the press conference about aid to Greece. Indicators:  Eurozone final CPI for June.

–    UK:  BoE Gov. Carney speaks at the Magna Carta lecture series

–    US: Fed’s Yellen gives 2^nd half of her biannual report to Congress. Not much impact expected as the speech is the same as yesterday. Indicators:  Initial jobless claims