The dollar rose to a 5 1/2-month high against the euro on speculation the economic
slowdown that started in the U.S.
is spreading and as oil prices dropped.
The European currency sank the most
in almost eight years against the dollar on Aug. 8 as traders pared bets the
ECB will raise interest rates as the economy slows. Last week's decline was the
most since January 2005.
French industrial production unexpectedly dropped 0.4% in June, the National
Statistics Office reported today in Paris.
The median forecast of economists was for an increase of 0.6%.
EUR/USD printed lows around $1.4908. Liebscher's
comments helped the rate to break above $1.5000 and print highs on $1.5083. Later rate back to $1.5040 and
$1.5000/05 before
falling to $1.4900.
GBP/USD rose to $1.9260 before it back under
$1.9200 and showed lows around $1.9070.
USD/JPY set stable around Y109.70/90.
In Europe
attention will be on UK CPI report, that may weight on pound.
Meanwhile, dollar’s rise may be capped ahead of International Trade report
with analysts expect deficit widened to $61,0 B in June after -$59,8 B month
earlier.