From the overnight session, the aussie is up 5, the pound is down 5, the Canadian is up 6, the euro is down 27, the swiss is down 21, the dollar is up 12.9.
In fact, seeing Euro zone producer prices in August contract again simply highlights an environment where the Euro needs to move even lower until the exchange rate allows the Euro zone to borrow strength from its trading partners.
The U.S. dollar continues to stand up to its fellow G-10 competitors.
On Tuesday the U.S. dollar rose to its highest level in fourteen months against the euro as investors expected the Federal Reserve would increase interest rates sooner than initially forecasted.
I wasn’t able to get any Pre-Dawn Updates out last week but I will do my best to get another one out this week before the 3 day Holiday weekend! Markets are closed on Monday for Labor Day.
The Australian dollar rose to a two week high after inflation, prompting markets to reduce the chances of a possible interest rate cut later this year.
The Australian dollar is pushing higher against the world’s reserve currency after last year enduring its sharpest losses since the mid 1980s, according to Bloomberg.
The Australian dollar edged down on Tuesday against the world’s reserve currency, falling from the seven-month high that it touched on Monday, according to The Australian.
South Pacific currencies pushed higher on Monday after a private report noted the economy of China demonstrated its top growth in six months, Reuters reports.