The next data was issued
09:00 EU(15) PPI (April) Y/Y 6.1% 6.1% 5.7%
09:00 EU(15) PPI (April) 0.8% 0.8% 0.7%
09:00 EU(15) GDP (Q1) preliminary Y/Y 2.2% 2.2% 2.2%
09:00 EU(15) GDP (Q1) preliminary 0.8% 0.7% 0.4%
The
dollar fell by signs that the U.S. financial sector, and thus probably
the economy, is still far from out of the woods. The Wall Street
Journal reported on Tuesday that U.S. investment bank Lehman Brothers
may raise up to $4 billion in new capital, suggesting the firm could
post its first quarterly loss since going public.
The
news added to risk aversion stoked during the previous session after
Standard & Poor's cut its credit ratings on Lehman, Merrill Lynch
and Morgan Stanley and said their outlooks were predominantly negative.
Data on Tuesday showed annual euro zone producer price
inflation surging to 6.1 percent, its highest in 7-1/2 years,
while first quarter growth was revised slightly higher.
EUR/USD: Opened in early Europe around $1.5552. European dealing
saw the greenback under pressure on the back of the WSJ article
alleging more writedowns to come out of the US, rate pushing up
steadily over the balance of the morning, with widely reported stops
through $1.5600 targeted and triggered en-route to $1.5628. Euro-dollar
eased back under the figure to trade around $1.5590 ahead of the US
open. Offers $1.5630, $1.5640/50, tech $1.5665, bids $1.5580, $1.5555/45
GBP/USD:
Opened early Europe at $1.9645. Cable recovered to $1.9645 into Europe,
but came under further pressure, extending lows to $1.9612 before
recovering, easing to $1.9650 ahead of NY.Cable bids $1.9650/40,
$1.9610/00. Offers $1.9690-00/10, $1.9740/50
USD/JPY:
Opened in early Europe around Y104.25.European dealing opened with
dollar-yen coming back to test Monday's low, this level giving wat as
the pair eased to Y103.88. Talk of large expiry interest at Y104.00
today provided support, with rate able to push back to Y104.40 by the
end of the morning. Dlr-yen offers Y104.70/80, Y105.30, lge exp
Y104.00, stops Y103.80
At 1400GMT, US factory new orders are expected to hold steady in April on an already reported 0.5% decline in durables orders.