FX Update- USD
The greenback has rebounded from modest selling pressure following the July retail sales report with the USD Index up 0.4% to 76.46. The USD index continues to consolidate above 76 and is in line with the coincident range from mid-February.
EUR/USD turned flat after the retail sales report, but has since resumed its downward trend to fall 0.3% to 1.4882. EUR/USD remains well within yesterday’s range and appears to be consolidating just below 1.49. EUR/USD is the lower portion of today’s range with the 9 and 200-Day moving averages at convergence over price at 1.5227.
Cable, down 1.5% to 1.8688, is near session lows and trading at its lowest level since October ’06 after the BOE reduced its growth forecast while elevating its inflation forecast going forward. Cable has dropped nearly 6% over its current 8-session losing streak with few signs of a significant correction, save for some profit taking, in the near-term. GBP/JPY is down 2% to 203.06, EUR/GBP is up 1.1% to 0.7956 and GBP/CHF is down 1.4% to 2.033.