Weak US industrial production - this time we get a small knock on the USD
This afternoon's production data in the US has come in weaker on all fronts. The broader industrial output number was up by only 0.1% against consensus forecasts of a 0.4% rise. Looking more specifically at manufacturing, this fell 0.4%, with expectations of a 0.3% rise on the month.
While the reaction has been a modest one, it was noticeable, and the market will start paying attention to any significant misses in the US data. There is a view that the US economy has or is hitting its peak, and that the USD may start to lose a little more ground than it has.
USD strength is as much a case of weaknesses elsewhere, and notable has been the EUR which is suffering from the slowdown in Europe.
USD/JPY has slipped back towards 111.50 and may be dissuaded in retesting 112.00 later today, though ranges here are very tight in the daily grind higher.
Cable has found support ahead of 1.3200, though, into the weekend, headline risks may see limited interest to push back towards and above 1.3300. If so, 1.3400 will be a tough level to break.