U.S. Dollar Trading (USD) gained again during the Asian session this time lead by the Antipodean currencies AUD and NZD. Weak EU data allowed new multimonth highs against most currencies except the Yen which outperformed as banking worries continued. Gains in Oil as a hurricane formed off the Gulf Coast pared some of USD gains. US data was mixed with a rise in CB Consumer Confidence to 56.9(53 Expected) for August being offset by a fall in New Home Sales for July to 515K (530K expected). FOMC minutes from last Fed meeting also released but offered little new to the debate over future rate movements. In the U.S. share markets, the NASDAQ was down 3 points (-0.15%) and the Dow Jones was up 26 points (0.23%). Crude Oil closed up $1.16 ending the New York session at $116.27 per barrel. Looking ahead, July Durable Goods Orders are seen at -0.5% vs. 2% in June. US Crude Inventories are expected to build .9M Barrels.
The Euro (EUR) was on a weak footing as USD strengthened broadly before being knocked lower on weaker than expected data. GFK Consumer Confidence dropped to 1.5 in September vs. 2 expected and Q2 German GDP was confirmed at -0.5%. The big market mover was August IFO Index which fell more than expected to 94.8 vs. the 97.1 forecast. The Euro broke through support at 1.4600 before a rally in Oil allowed some relief. Overall the EUR/USD traded with a low of 1.4570 and a high of 1.4760 before closing the day at 1.4650 in the New York session. Looking ahead, German Import Prices are expected to rise 0.5% in July.
The Japanese Yen (JPY) one of the only currencies to stand up to USD strength gaining against most currencies especially the EUR/JPY which took out option barriers at 160. Ongoing unwinding of carry trades supported gains. Overall the USDJPY traded with a low of 109.14 and a high of 109.94 before closing the day around 109.60 in the New York session.
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