The following data were issued
09:00EU(15)PPI (June) 0.9% 0.9% 1.2%
09:00EU(15)PPI (June) Y/Y 8.0% 7.9% 7.1%
The dollar traded near a one-month high against the euro before a Federal Reserve meeting
tomorrow at which policy makers may leave interest rates on hold and signal
prices are increasing too quickly.
The U.S. currency was also near the
strongest in a month against the yen before a report today that may show the
Fed's preferred measure of prices rose in June by the most this year,
supporting the case for higher borrowing costs. Crude oil rose for a second day
as a tropical storm threatened U.S.
output.
EUR/USD opened in early Europe around $1.5587. Offers placed on the approach to $1.5600 prevented further gains and allowed rate to ease back to $1.5565. Offers $1.5600, stops $1.5605/10, offers $1.5620/30, bids $1.5550/40.
GBP/USD opened early Europe at $1.9737. Renewed selling into early Europe took rate through the overnight base down to $1.9665. Cable bids $1.9650/40. Offers $1.9700, $1.9730/35-50.
USD/JPY opened in early Europe around Y107.69. Dollar lifted above Y108.00 and on to a Y108.06 initial high.Dlr-yen offers Y108.35/40, talk barrier Y108.50, stops Y108.60/65.
The personal
consumption expenditure index, the Fed's preferred price gauge, rose
2.2% in June after excluding food and fuel, according to economists. It climbed
2.1% the previous month.
Futures contracts on the Chicago Board of Trade
showed a 53% chance the Fed will raise its target rate by at least a quarter of
a percentage point by Oct. 29, up from 51% a day earlier.
Gains in the dollar may be limited
by speculation reports this week will show the U.S.
services industry contracted for a second month and home sales declined,
casting doubt on the strength of the U.S. economy.