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The euro edged higher against the dollar

The euro edged higher against the dollar on Wednesday due to some short-covering following the euro's fall to a six-month low the previous day.
Some stop-loss buying of euro and buying by CTA funds gave a lift to the single European currency, which slid on Tuesday after data showed German business morale had fallen to a three-year low.
The data was the latest sign that weakness in the U.S. economy had spilled over into other major economies, and underscored market expectations for the European Central Bank to eventually lower interest rates.
The euro rose around 0.5 % to USD 1.4730, pulling away from a six-month low of USD 1.4570 hit on trading platform EBS on Tuesday.
The dollar dipped broadly, with sterling rising around 0.4 % to USD 1.8445, pulling up from a two-year low of USD 1.8330 hit on Tuesday.

American Time Zone | ForexGen

U.S. equities
Most U.S. stocks advanced as a rally in energy shares overshadowed concern the Federal Reserve will raise borrowing costs to slow inflation.
Anadarko Petroleum Corp. jumped 6.3 % and led gains in 32 of 39 energy producers in the Standard & Poor's 500 Index as crude climbed more than USD 1 a barrel.

USD at six month high
The dollar rose to a six-month high of 1.4570 against the euro on speculation the greenback will be the main beneficiary of a global economic slowdown as German business confidence dropped in August more than forecast.
The minutes from the latest FOMC meeting showed that the Federal Reserve policy makers agreed this month that their next change in interest rates will be to raise them, while reaching no conclusion on the timing of such a decision.

German IFO Pummels Euro, Boosts Dollar | ForexGen

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.