Dollar dropped against all majors

The main focus was on the US dollar yesterday and its drop against all the majors yesterday.  This was due to the financial situation presently in the US , as shares dropped putting the dollar under pressure.

Bernanke made comments yesterday saying that the US economy was slowing in growth and also president George Bush helped the US dollar regain some of its losses by stating that they would be severely cutting down on Crude oil and concentrate on offshore drilling, which saw crude oil drop by $9 a barrel.  Due out today from the US is the June CPI figures, Capacity Use, Industrial Production.  The main focus however will be on Bernanke’s statements tonight. 

Due to the US dollar financial weakness, the Euro hit highs just above the 1.60 mark but dropped after poor German ZEW index data was released coming in at -63.9% from its predicted -55%. Due out today is the HIPC expected at 0.4% down from its jump of 0.6% last month.

The Sterling hit a peak of $2.0157 against the USD as the financial economy for US showed a gloomy outlook. There was good data out in the form of CPI for June coming in at 3.8% above its expected 3.6%.  Due out today is June’s claimant count expected to be 10k from its previous 9k. Also due out today is the unemployment rate expected to be unchanged.