By Jay and Julie Hawk of www.TheFXperts.com
The U.S. Dollar Index (DXY) was slightly higher this morning despite the ongoing U.S. government shutdown and the release of U.S. PPI on Tuesday, which failed to meet expectations of -0.1 by coming out at -0.2. Also, Core PPI was down -0.1 versus the +0.2 consensus. The Dollar index currently lies at the 96.06 level, up just -0.10% on the day.
Elsewhere, Sterling strengthened this morning after the UK government survived a no confidence vote in the House of Commons. The lower house of the UK Parliament defeated the motion raised by Jeremy Corbin, the opposition Labour party’s leader, by a majority of 325 to 306 votes. Also out today was UK CPI that increased by +2.1% y/y, in line with expectations.
The Euro continues under pressure this week as concern of a Eurozone economic slowdown put pressure on the consolidated currency. Also trading lower today was the Australian Dollar, which fell after the Australian Westpac Consumer Sentiment index printed at -4.7% versus a previous reading of +0.1%. In contrast, the Canadian Dollar gained after WTI crude traded up to $52.43 per barrel, rising +0.32 or +0.61% on the day.
Looking ahead, Thursday’s highlights include the first day of the G20 Meetings being hosted for the first time by Japan in the city of Osaka where a speech will be given by BOJ Governor Kuroda.
Friday will feature the second day of the G20 meetings and a speech by FOMC member John Williams. Releases will include UK Retail Sales (-0.8%) and Canadian CPI (-0.4%).
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