The NZ Dollar finished the strongest currency on Friday last week after a two-day surge. With no domestic or Chinese data to influence the NZ Dollar the buying was driven by technical factors. On Thursday the GBP/NZD exchange rate moved below an uptrend that had supported Sterling for five months and on Friday that downward break took it to a one-month low.

None of the major currencies threatened the Kiwi’s lead on Friday. Second place was shared by the Australian Dollar and the Euro, with the US and Canadian Dollars hard on their heels.

There was very little data to influence currencies on Friday so apart from the Kiwi Dollar, proceedings were fairly uneventful. A couple of provisional US purchasing managers’ indices came in lower on the month and the finalised Michigan index of consumer sentiment touched an 11-month low. The final revision to Q2 gross domestic product showed the US economy expanding by a quarterly 1.0%, slightly more than the earlier 0.9% estimate.

Today’s FX market promises to be no more exciting than the end of last week, with almost no data from Europe and only a handful of ecostats from the US. The highlights are likely to be the comments of two FOMC members who are speaking this evening. The US data this afternoon covers pending home sales, the Dallas Fed’s manufacturing index and personal income and spending.

After London has closed there will be public appearances by Charles Evans and John Williams, both voting members of the Federal Open Market Committee. Following comments last week from five FOMC members, to the effect that it is still game-on for an interest rate increase this year, investors will be keen to hear what these two chaps are thinking this week. If they were to agree that there could be a move as soon as next month the US Dollar would surely strengthen.