The euro is tumbling mostly as financial concerns around Deutsche Bank (Germany’s largest bank) have been fueling talk of a government-backed bailout and signal a potentially systemic problem for the banking sector. German retail sales results and a string of consumer inflation/spending data and employment numbers out of France, Italy, Greece, and the broader Eurozone came out mostly in line with expectations.
The US dollar is climbing perhaps as investors flee the uncertainty of the euro and move toward the perceived safety of the greenback. Personal spending results for August were flat (slightly below expectations of 0.1%) while personal income rose by 0.2%, as expected.
The pound is choppy this morning as revised Q2 data showed the UK’s GDP growing a slightly stronger than expected 0.7%.
The Australian dollar is down slightly at the moment with no new data scheduled to come out today. The currency was trending lower last night as July’s private sector lending results came in slightly weaker than forecast.
The Canadian dollar is rising as oil prices climb toward $48 per barrel. Canada’s industrial product prices shrank more than analysts predicted during August, while the country’s GDP grew a stronger-than-expected 0.5% in July, which is also helping to lift the northern currency this morning. The yen is weakening this morning as housing starts grew much more slowly than expected, and perhaps as investors are viewing the greenback as a safer currency.
EURUSD: The euro is down on Deutsche Bank concerns.
GBPUSD: The pound is choppy with the only surprise being stronger-than-expected Q2 GDP growth.
AUDUSD: The Aussie dollar is dipping with no new data out.
USDCAD: The Canadian dollar is rising with oil prices.