The greenback lost favour as a safe haven currency in Asian trading the US released data which suggested the economic recovery halting and sluggish at best. Yesterday, the release of three different sets of negative data sent the USD falling against all major currencies Core retail sales, stripped of automobile sales fell by 0.4% in May, the biggest decline in over a year. Retail sales, it was reported, fell by a seasonally adjusted 0.2% for May, whilst April’s figure was revised to a 0.2% decline from a previously reported increase of 0.1% – making this the first back to back decline for two full years. The US also reported that Producer price inflation fell 0.1% in May, whilst core producer price inflation fell 0.2% for the month of May, making it the largest monthly drop for almost 3 years.
The EUR/USD was up 0.21%, trading at 1.2583, the GBP/USD was up 0.15%, trading at 1.5529 whilst against the Aussie the USD was down 0.26%, trading at 0.9958. Against the safe haven currency the Japanese Yen, the USD remained fairly stable at just 0.04% down, trading at 79.45, but the biggest fall for the USD was against its Canadian cousin, wit the oil sensitive CAD up 0.30% against the USD. The US Dollar index which measures the greenback against a basket of 6 weighted currencies was down 0.05%, valued at 82.54 at time of writing (5.01 am GMT)
Today looks like being very busy day for binary options traders with plenty of volatility and resulting profit opportunities even though European markets indicate a rather flat opening. The eurozone is set to release consumer price inflation data which will take centre stage for the morning, but then the spotlight later falls on the US in the afternoon with inflation data, the latest current account balance and its weekly initial jobless claims all set to be released.
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