There was also a huge selling in equities yesterday which was a market mover. Dow Jones down just over 7%; NASDAQ just down over 8%, just over 700 points. There also seems to be recession and banking fears. Oil prices came down to a 7 month low at $74.54 per barrel. The strength of the Dollar just confirms its status as a safe haven and people feel that the US economy is in a better position to come out of recession. PPI figures for September came in at 0.4% against 0.2% expected.
The Euro early on gained against the Dollar on the back of weak data coming out of the US. It could not hold on with equity losses and huge selling of Euro against the Yen. Oil prices also played a large part in this. The main data coming out of the Euro zone was the CPI figures. It came 0.2% against 0.1% expected.
The sterling was up and down yesterday. It traded at around 1.7600 before the strength of the US$ pulled it back to 1.7200 at the New York session. The main data coming out of the UK was dominated by unemployment figures. The figures came in at 5.7% against 5.5% expected.