US export and import prices both rise by 0.2% - below forecasts
There is not too much to read into the latest import/export price data, which has seen both sides of trade seeing a modest 0.2% gain - well below expectations. There was to be little response to these numbers in either case, with the market predisposed to buying the USD up again as we see the major currencies losing more ground against the greenback in North American trade.
The JPY and CHF have both been notable winners against the USD more recently, as a function of broader demand for safe-haven currencies. Here we have seen the USD/JPY rate paid up off the 109.00 level, while USD/CHF has managed to stave off a push towards parity. We may see further gains for the USD from here if stock markets can continue to recover - in what has been a modest move so far - so traders will be watching the reaction on Wall Street when cash markets open in a little under an hour.
ver, EUR/USD is pressing lower to challenge 1.1200 again, though we expect to see some support coming in at these levels and just below the figure, with a breach of 1.1160 need to suggest we could retest the 1.1110 lows.
Cable is getting no favours in the current climate, and losses have threatened a move to 1.2900. We may yet see a stronger drive lower, with earlier gains finding sellers coming in strong from circa 1.2955-65.
AUD, NZD, and CAD are also pushing lower as a function of a stronger USD, and we have seen AUD/USD hitting fresh lows just shy of 0.6930. NZD/USD found support around 0.6563, and so far continues to hold off this level. In the same way, USD/CAD is trying to resist a move to and through 1.3500 again, though buyers are not giving up on higher levels as the USD continues to draw buyers on dips vs risk related currencies.