The dollar touched a record low against the euro as Federal Reserve Chairman Ben S.
Bernanke said growth and inflation risks have both increased.
The currency weakened the most against the yen since the March collapse of Bear
Stearns Cos. as Bernanke said helping financial markets return to more normal
functioning remains ``a top priority.''
``Bernanke clearly acknowledged more growth risks than he anticipated a few
weeks ago,'' said Robert Sinche, head of global currency strategy at Bank of
America Corp. in New York.
Retail sales advanced 0.1% last
month, after a revised 0.8% advance in May, the Commerce Department reported
today in Washington.
U.S.
producer prices rose 9.2% in the 12 months ended in June, the Labor Department
said. The median forecast of 25 economists was for an increase of 8.7%.
EUR/USD refreshed life-time highs
around $1.6030 before retreating to $1.5907.
GBP/USD tested key resistance
level on $2.0130, but failed to set above and was dragged down to $2.0000.
USD/JPY fell to the lows
near Y104.17 before rebounding to Y105.11.
Wednesday is full by economic data. At 08:30 GMT
UK
will issue its Labir market figures.But the most interesting will be NY
session today. At 12:30 GMT CPI report is due to come with
analysts predict prices rose +0.6% in June after +0.7% month earlier. At 13:00 GMT
US
treasury’s TICS report is schedule to come. At 13:15 GMT Industrial production
figure will be released.
Meanwhile,
the main focus will be on FOMC’s minutes at 18:00 GMT.