The Euro traded in a choppy range overnight, consolidating recent volatility. Sterling also remained generally range-bound, oscillating around 1.7950. The data docket fell entirely by the wayside again in Asian trading as forex markets continued to pick up cues from global risk sentiment. As if the bankruptcy of Wall Street’s number-four investment bank is not enough, the economic calendar packs a wealth of releases in European hours to spur on volatility. Read the rest of this entry »

New Zealand Producer Prices jumped sharply higher in the three months to June, registering the biggest quarterly jump in 28 years. The minutes from the last monetary policy meeting of the Reserve Bank of Australia further advanced the case for rate cuts in the near term. Read the rest of this entry »

Price growth at the factory gate in the Euro-zone is anticipated to accelerate even faster in May, as Eurostat is anticipated to report a 0.9 percent rise in the producer price index (PPI). Furthermore, PPI is forecasted to surge 6.7 percent in May from a year earlier, the sharpest increase on record. Read the rest of this entry »

Rising oil prices mixed with fading growth prospects pressed on the US dollar, and led the currency to weaken against all of its major counterparts. In the fray, the commodity currencies picked up minor gains against the greenback though oil prices rose above $136/bbl. The low yielding Swiss franc soaked in the biggest gains against the greenback, while the Japanese yen rebounded from a three-month low to trade around 106.8. Against the European currencies, the dollar tumbled against the euro to 1.56, while the British pound inched higher to trade at 1.96 against the greenback. Read the rest of this entry »

The US dollar rose across all the major currencies as rising inflationary concerns spurred speculation that the Fed may hold back on additional rate cuts. As a result, the strengthened dollar picked up the most against the British Pound as disappointing UK data weighted on the currency, and was followed by the New Zealand dollar as the pair plunged to 0.785. The US dollar appreciated against the Swiss franc as the pair traded in parity, and was followed by the low yielding Yen as the pair reached 101.81. The Canadian and Australian dollar also weakened against the US dollar amid oil prices hitting a new record high of $113.99 a barrel. Read the rest of this entry »