USD

Good Morning:

Good Morning:

The USD and JPY fell versus all major counterparts, as data from China showed that manufacturing is expanding.  This caused investors to seek higher-yielding assets.
The Aussie rose as data showed that their economy grew by the fastest pace in over 3 years.
Today we have data on the growth of US manufacturing, and the data is expected to be disappointing.
On another note-The Swedish krona rose as data from this Scandinavian country showed that manufacturing expanded for the 15th month in a row.

Good Morning:

New York University economist Nouriel Roubini commented in an e-mail that he sees second quarter growth revised to 1.2% annual rate, and that growth is slowing to below 1% in the third quarter. He also puts odds of a renewed U.S recession at 40%.

Good Morning:

The Yen rose to a 15 year high against the USD, as continued concerns that the global recovery is faltering has investors running to the safe refuge of the JPY.  The USD also rose.
 Data out of Europe suggested that the German economy is showing strength. 
Today we have data in the US regarding the ailing US housing market.  The expectations are for more disappointing news regarding Existing Home Sales.

World equity markets are mostly lower, and US Futures are also pointing to a lower opening this morning.

Good Morning:

The JPY and USD lost some ground overnight, as positive equity markets reduced demand for the safe haven of these currencies.  The overall rise in the Yen is causing concerns from the Japanese Government, and may prompt calls to slow the acceleration.  
The Euro rose a bit even as the ZEW survey was mixed, but it seems that the German and French economies are showing good signs for a recovery.  Next week’s IFO data will give investors a clearer picture of economic growth in the Euro region.

China’s foreign direct investment rose to 20.7% in July from 19.6% the prior year.

The market had a limited reaction to the release.

Good Morning:

The week starts out with disappointing data from Japan.  The GDP data from Japan printed at .1% compared to the .6% expected.  This data suggests that the strength of the  global recovery may be weaker than expected as the world’s 3rd largest economy cools down as consumer demand dwindles in Japan.
Data from the UK also was disappointing, as the housing sector shows an overall slowdown.

A slew of Chinese July economic data was released relatively as expected, with Producer Prices softer. The market has had no reaction to this release as the risk has been for sale since the NY close, and we see the EUR/USD pair hovering around the 1.31 handle.

• Producer Price Index (YoY) - Survey:6.0%   Actual:4.8%   Prior:6.4%
• Consumer Price Index (YoY) - Survey:3.3%   Actual:3.3%   Prior:2.9%
• Retail Sales (YoY) - Survey:18.5%   Actual:17.9%   Prior:18.3%
• Retails Sales YTD (YoY)  - Survey:18.2%   Actual:18.2%   Prior:18.2%
• Industrial Production (YoY) - Survey:13.4%   Actual:13.4%   Prior:13.7%
• Industrial Production YTD (YoY) - Survey:16.9%   Actual:17.0%   Prior:17.6%

Good Morning:

All eyes will be on this afternoon’s FOMC statement at 2:15 PM.
The USD rose overnight-as market participants await comments by the FED this afternoon on the weakened state of the US economy. There is mounting agreement that the FED will not make any drastic changes in monetary policy now.
This will leave the door open for future policy change in the future if need be. 

The GBP was lower overnight even though UK trade balance data was slightly better than expected.