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The U.S. dollar traded higher against the most major currencies. The U.S. currency remained supported by yesterday's comments by the Fed Chair Janet Yellen. The Fed Chair said the economy in the U.S. is continuing to improve but the recovery is not yet complete. She added that if the labour market continues to improve more quickly, the Fed will hike its interest rate sooner than expected, but weaker conditions will mean a longer period of low interest rate.
The U.S. producer price index rose 0.4% in June, exceeding expectations for a 0.2% increase, after a 0.2% decline in May.
On a yearly basis, producer prices climbed 1.9%, beating forecasts of a 1.8% rise, after a 2.0% gain in May.
Producer price index excluding food and energy climbed 0.2% in June, missing expectations for a 0.3% gain, after a 0.1 fall in May.
On a yearly basis, the PPI excluding food and energy gained 1.8%, exceeding expectations for a 1.7% rise, after 2.0% increase May.
Net foreign purchases of long-term securities rose to $19.4 billion in May, missing expectations for an increase to $27.4 billion, after net sales of $41.2 billion in April. April's figure was revised down from net sales of $24.2 billion.
Industrial production in the U.S. climbed 0.2% in June, missing forecasts of a 0.4% gain, after a 0.5% rise in May. May's figure was revised down from a 0.6% increase.
The NAHB housing market index increased to 53 in July from 49 in June, beating expectations for a rise to 51.
The euro traded lower against the U.S. dollar after the weaker-than-expected trade data from the Eurozone. Eurozone's trade balance surplus rose to €15.3 billion in May from €15.2 billion in April, missing expectations for an increase to €16.3 billion. April's figure was revised down from a surplus of €15.8 billion.
The British pound traded mixed against the U.S. dollar despite the better-than-expected labour market data from UK. The unemployment rate in the UK decreased to 6.5% in the three months to May, from 6.6% in the previous three months. That was the lowest level since October to December 2008.
Analysts had expected the unemployment rate to remain unchanged at 6.5%.
The number of people claiming unemployment benefit dropped by 36,300 in June, exceeding expectations for a decline by 27,100, after, after a fall by 27,400 in May.
These strong figures could mean that the Bank of England will hike its interest rate sooner than expected, perhaps before the end of the year.
But there is a problem. The growth in real wages remains weak. Average weekly earnings, excluding bonuses, increased by an annual 0.7% in the three months to May, after a 0.9% rise in the previous three months. That was the slowest growth since records began in 2001. Inflation over the same period was 1.6%.
Average weekly earnings, including bonuses, rose by an annual 0.3% in the three months to May, after a revised 0.8% rise in the previous three months.
The Swiss franc traded lower against the U.S. dollar after the weaker-than-expected ZEW/ Credit Suisse index for economic expectations. The ZEW/ Credit Suisse index for economic expectations in Switzerland declined to 0.1 in July from 4.8 in June.
The Canadian dollar traded slightly higher against the U.S. dollar after the Bank of Canada's interest rate decision. The BoC kept unchanged its interest rate at 1.00%. Canada's central bank said consumer inflation increased sooner than expected, caused by higher energy and import prices. The BoC added that it is is neutral with respect to the timing and direction of the next change to the interest rate.
Canadian manufacturing shipments gained 1.6% in May, beating forecasts of 0.4% rise, after a 0.2% decline in April. April' s figure was revised down from a 0.1% decrease.
The New Zealand dollar dropped against the U.S dollar due to the weaker-than-expected inflation data from New Zealand and yesterday's comments by the Fed Chair Janet Yellen, but later recovered a part of its losses. New Zealand's consumer price index increased 0.3% in the second quarter, missing expectations for a 0.5% rise, after a 0.3% gain in the previous quarter.
On a yearly basis, the consumer price index in New Zealand rose 1.6% in the second quarter, after a 1.5% increase in the previous quarter.
The Australian dollar declined against the U.S. dollar due to yesterday's comments by the Fed Chair Janet Yellen, but later recovered a part of its losses. The leading index for Australia released by Westpac and the Melbourne Institute climbed 0.1% in June, after a 0.1% rise in the previous month.
Some better-than-expected economic data from China hadn't any positive impact on the Australian and New Zealand dollar. China's gross domestic product rose 7.5% in the second quarter, exceeding expectations for a 7.4% increase, after a 7.4% in the previous quarter.
Industrial production in China climbed 9.2% in June, beating forecasts for a 9.0% rise, after a 8.8% gain in May.
Fixed asset investment in China rose 17.3% in June period, exceeding expectations for a 17.2% gain, after a 17.2% increase in May.
Retail sales in China gained 12.4% in June, after 12.5% rise in May.
The Japanese yen traded mixed against the U.S. dollar dollar due to yesterday's comments by the Fed Chair Janet Yellen. The Bank of Japan (BoJ) said in its monthly report on Wednesday that Japan's economy has continued to recover moderately. The BoJ also said that Japan's output gap was 0.6% in January-March, turning positive for the first time since Q2 2008.
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