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The Aussie dollar took a rap following sub-forecast CPI data out of Australia, which came in at 1.9% y/y in Q2 versus the median forecast for 2.2% y/y, while the underlying rate remained stubbornly below the RBA's target range. AUD-USD is just off its lows, at 0.7884 bid presently, showing a 0.7% decline on the day as the London interbank market take to their seats. Read more
Decent incoming U.S. data supported the dollar in N.Y. on Tuesday, while earnings beats helped Wall Street, resulting in higher Treasury yields, also dollar friendly. EUR-USD topped at 1.1712 before profit taking took the pairing to 1.1646 lows. USD-JPY meanwhile, was supported by risk-on conditions, topping at 111.68. Read more
OVERVIEW German business morale hits a record high in July, with Euro's rise not a concern. U.S. consumer confidence unexpectedly rose in July, just shy of a 17-year high. U.S. house prices rose at a slower than expected pace in April. Market sentiment has improved with global stocks in positive territory and oil prices also higher. HIGHLIGHT German business confidence rose again unexpectedly in July, hitting a third consecutive monthly all-time high. Read more
The dollar trade mostly without direction during the Asian and European AM sessions. USD-JPY lifting to a two-session peak of 111.46 amid a broad-but-modest tick lower in the yen, while EUR-USD narrowly orbited the 1.1650 level, continuing the consolidation after the pair clocked a 23-month high on Friday at 1.1684. Read more
Narrow ranges have been the order of the day so far, with a combo of a dearth of fresh directional cues, summertime thinness, and the looming proximity of the Fed's policy announcement (tomorrow) fostering a noncommittal market. USD-JPY dipped back under 111.00, reflective of a broad though moderate bid in the yen, which has been seen since just after the Tokyo fix. Read more
The dollar has managed an up day today against most currencies (the Canadian dollar being the main exception), albeit fractionally so, with the narrow traded-weighted index showing a 0.1% gain after recouping from intraday losses. EUR-USD has settled around 1.1630-40, earlier edging out a fresh intraday low at 1.1625, which matched Friday's low. Read more
OVERVIEW The Euro dipped back from 23-month highs following softer economic data. IHS Markit said its monthly UK Household Finance Index dropped to 41.8 from June's 43.7, its lowest in 3 years. The US existing home sales fell more than expected last month, but price median prices hit a record high. Markit's US manufacturing and services flash surveys both showed higher than forecast readings. Trump related headlines are driving risk aversion with global stock markets in the red. HIGHLIGHT The US Dollar index hit a fresh 13-month as the focus remained on developments on President Donald Trump's possible ties to Russia. Read more
EUR-USD settled under 1.1650 after drifting lower from the London open, putting in some space from the Asia-session 23-month high at 1.1684. Softer than expected Eurozone PMI readings in flash estimates for June weighed on the common currency. Reuters also reported an unnamed source saying that the ECB is won't making a decision on the QE tapering schedule until its October meeting, with policymakers wanting to wait until after the German election in late September. Read more
USD-JPY carved out a five-week low at 110.86 during the Tokyo session. The move reflected a bout of broad dollar selling, with yen crosses generally holding narrow ranges over this phase. EUR-USD edged out a new 23-month high at 1.1684, despite Reuters reporting an unnamed source saying that the ECB won't be making a decision on the QE tapering schedule until its October meeting, with policymakers wanting to wait until after the German election in late September. Read more
