New York forex wrap-up; EUR/USD near range tops ahead of weekend

US housing starts rise to582,00 annual rate in June from 530,000 in May, up 3.6% Canadian CPI falls 0.3% y/y; first fall in 15 years Canadian leading indicator falls 0.1% in June Mexico cuts rates 0.25% to 4.5%, signals pause in easing cycle Belgian consumer sentiment rises to -17 in July from -18 in June White House's Summers: Economy to resume growth in second half; Economy has pulled back from abyss; must export more, cut spending and raise revenues after recovery China's Zhou: Happy with reserve position as long as returns are reasonable BOE's Bean: Bank to assess QE on quarterly basis, not monthly Barclays Capital: US could lose AAA status if dollar loses reserve position CIT in talks with banks for short-term funding, may avoid bankruptcy S&P 500 closes unchanged; oil up $1.50 to 63.50 EUR/USD eased to fresh session lows in the 1.4060s before the US housing data but got a lift from the perception that the worst iis over for US residential construction. Prices drifted up to 1.4145/50 late in a quiet Friday afternoon but dipped back toward 1.4100 near the closes as stocks dipped on profit-taking. All things considered, the reflation trade is the most pervasive influence on a market on a low volatility summer market. USD/JPY stayed near the top of recent ranges this afternoon as the market becomes increasingly comfortable assuming risk. A break through 94.50 is needed to ignite fresh buying, however. USD/CAD was very narrowly range-bound today close to 1.1150, consolidating the big losses from earlier in the week. Poor Canadian data is offsetting rebounding oil prices to an extent. AUD clawed back early losses to 0.7970, ending the session at 0.8020. Have a great weekend all and good luck next week--jc