Forex today: US closed for 4th July holiday, FX consolidates

Forex today was a day of consolidation due to the 4th July Independence day holiday for the US session.

In Asian trade, EUR/USD dropped to 1.1338 and was pared back to 1.1374 o/n. There were no major headlines for the major.

USD/JPY was rejected at 113.48 highs with strong offers placed above from Japanese exporters at 113.50. USD/JPY dropped on the North Korean news around the launchers of intermediate-range missile that fell in Japanese waters. The pair picked up from 112.74 driven by EUR/JPY. 113.24 was the session high.

GBP/USD dropped down to 1.2917 after a modest UK construction PMI miss o/n. BoE's McCafferty suggested he will vote for Central Bank hike again on Aug 3rd while Vlieghe lived up to the moniker as MPC's most dovish while Sterling moved within a tight range between 1.1212/59.

USD/CAD dropped from 1.3014 to 1.12912  fuelled by a  hawkish shift in BoC expectations where there is now a 54% probability of a BoC rate hike next week. AUD/USD was consolidated between 16 pips on the 0.76 handle after yesterday's assault post the RBA decision. 

Day ahead in Asia and US (GMT):

 23:50 JP Foreign Bond Investment w/e, 321.8b prev
• 23:50 JP Foreign Invest JP Stock w/e, -26.3b prev
• 01:45 CN Caixin Services PMI Jun, 52.8 prev
• 18:00 Federal Reserve's FOMC will release the minutes from its June policy meeting - Washington

Key notes from US session: 

• US requests closed-door UN Security Council meeting on N. Korea missile launch - LiveSquawk
• North Korea's ICBM: what does it all mean? - Nomura
• BoE's Saunders: Prepare for higher interest rates - The Guardian