FX Update- USD
Extended weakness in the afternoon session pushed the greenback lower vs. all major currencies going into the close, with the USD Index off 0.4% to 76.823. USD caught a brief bid following the higher than expected July PPI data this morning, but carried a negative bid tone for the remainder of the day in response to extended selling pressure in equities and the rebound in energies. Hawkish comments from the Fed’s Lacker late in the afternoon session yielded little to no reaction in FX. Fed fund futures show roughly a 90% chance the Fed will leave rates unchanged in September. There are no scheduled releases in the US tomorrow, save for DOE Inventories at 10:35e which could yield some collateral movements in USD.
EUR/USD, up 0.55 to 1.4777, rebounded from a weak overnight session to close near session highs. Cable, up 0.1% to 1.8664, continues to show consolidation above 1.865 and is also set to close in the upper portion of today’s range. USD/JPY, down 0.35%, faced selling pressure the entire day and is set to close just below the 9-Day moving average at 109.85.