Trading (USD) lost ground against all currencies as weakness in the US housing sector dampened speculation of Fed Rate Hikes anytime this year. US financials were under pressure again and a spike higher in Oil hurt the general stock market. US PPI for July at 1.2% was
considerable higher than the 0.6% forecast but was dismissed as backwards looking and not containing the recent Oil correction. US housing data was harder to ignore as July Building Permits dropped to .94M from 1.14M in June a drop of 16.7%. Housing Starts also slumped to a 16 year low at 965K in July vs. 1066K in June. In the U.S. share markets, the NASDAQ was down 32 points (-1.35%) and the Dow Jones was down 130 points (-1.14%). Crude Oil closed up $1.66 ending the New York session at $114.53 per barrel. Looking ahead, Crude Inventories are seen rising 0.7M.
(EUR) bounced off lows grinding higher as economic data surprised to the upside. German PPI was white hot at 2.0% m/m in July vs. forecasts of 0.7%. The German ZEW Index rebounded to -55.5 from -63.9 but this was tempered by the ZEW current conditions falling to -9.2. Overall the EUR/USD traded with a low of 1.4630 and a high of 1.4794 before closing the day at 1.4780 in the New York session.
(JPY) a resurgence in risk aversion aided the yen to gain against the USD. Large gains in their respective majors for GBP and EUR meant the crosses were relatively unchanged after bouncing off lows of the Asian and European session. The Bank of Japan held rates at 0.5% and downgraded the economic outlook. Overall the USDJPY traded with a low of 109.55 and a high of 110.33 before closing the day around 110.70 in the New York session.
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