A light event calendar kept trading quiet in overnight session tonight with the biggest fireworks coming from New Zealand where retail sales blew past estimates, printing at 1.2% vs. 0.5% expected.

The EUR/USD hit all time highs in overnight trade, coming within a whisker of the 1.3800 level as bullish GDP data and supportive comments from German Economy Minister Michael Glos, maintained the rally in the pair.

Over the past two and a half years, the carry trade has produced the easiest profits in the currency market. Is that still true?

With a barren economic calendar in both Euro-zone and North America, the focus in the currency market was strictly on the yen as the unit seesawed wildly throughout the night pulled by opposing forces of carry trade bargain hunters on one side and risk aversion shorts on the other.

Another very quiet night of trade in the FX markets as summer doldrums are clearly creeping in. In the UK, today the pound rallied above the 2.1050 level as the Trade Deficit shrank to its lowest level in more than a year.

Currency strategist Boris Schlossberg analyzes the major currencies for the week of July 9.

The Aussie made another 18-year high in overnight trade tonight printing at .8615 as carry trade demand continued unabated despite the fact that latest data offered little support for a near-term rate hike from the RBA.

A typically quiet pre-NFP night in the currency markets with most of the majors range bound ahead of the US employment number.

As expected the Bank of England hiked its overnight rate by 25bp to 5.75% expanding its interest rate advantage against the dollar, euro and the yen, but in its post rate hike statement the UK central bank tempered its hawkishness.

Ahead of what promises to be a very quiet day in North America with US capital markets closed for Independence day holiday, the majors continued their upward drift against the dollar, with UK and EZ data confirming the bullish bias.