The US dollar is on a tumble this morning as July’s consumer inflation and building permits results came in slightly below analyst expectations, which is giving other major currencies some steam today. While July’s US housing starts were higher than expected, investors may be starting to see the US’ momentum slowing, especially after last Friday’s disappointing retail sales growth.
The euro is climbing against the US dollar as the August ZEW surveys show European Union and German institutional investors feeling much more confident about the Eurozone economy than they were last month. The Eurozone trade surplus data from June also exceeded expectations, helping push the euro higher.
The pound is recovering from yesterday’s lulls as the UK’s retail, producer, and consumer inflation in July surprised and grew faster than analysts expected. With investors being so bearish on the pound since the Brexit vote, the positive news on top of the weaker US dollar is giving the British currency an extra boost this morning.
As investors look for alternative safe-haven currency other than the US dollar, the Japanese yen is strengthening to its highest levels against the greenback since the Brexit vote, trading below the 100 yen per dollar mark. Both the Australian and the Canadian dollars are trading higher mostly because of the greenback’s weakness.
EURUSD: The euro is trading higher on stronger-than-expected institutional investor confidence and a weaker US dollar.
GBPUSD: The pound is recovering from yesterday’s slump on surprisingly positive inflation data and the weaker greenback.
AUDUSD: The Aussie dollar is trading higher on positive consumer confidence levels and a falling US dollar.
USDCAD: The Aussie dollar is up on its US counterpart’s weakness.