The dollar held yesterday’s loss against the euro after Moody’s Investors Service put the U.S. under review for a credit rating downgrade, damping demand for the nation’s currency.
Japan’s currency slid about 1 yen per dollar within a few minutes at the start of London trading amid speculation the nation will intervene in markets to limit its gains.
The greenback fell versus most of its major peers before a report economists said will show retail sales dropped and as Federal Reserve Chairman Ben S. Bernanke prepared to testify for a second day to U.S. lawmakers.
New Zealand’s currency rose to a record a government report showed economic growth quickened.
New Zealand’s dollar climbed for a second day against the U.S. currency after the country’s economic growth quickened, signaling the nation is recovering from its deadliest quake in eight decades in February.
EUR/USD: the pair shown high in $1.4285 area then decreased.
GBP/USD: the pair shown high in $1.6190 area then decreased.
USD/JPY: the pair shown high in Y79.60 area then decreased.
At 0800GMT, the ECB publishes the Monthly Bulletin for July, although this usually adds little to the recent post-meeting press conference & statement, while final HICP data for EMU at 0900GMT is expected to confirm the preliminary estimate.
US data calendar, including jobless claims, retail sales and PPI, which are all due at 1230GMT.
At 1400GMT, Federal Reserve Chairman Ben Bernanke delivers the semi-annual monetary policy report to the Senate Banking Committee. At the same time, May business inventories are expected to increase 0.9% in May, reflecting the already announced 0.8% increase in factory inventories and the 1.8% increase in wholesale inventories. The weekly EIA Natural Gas Stocks data follows at 1430GMT