The dollar rose on Wednesday after a combination of poor Retail Sales data and central bank commentary increased risk aversion and therefore safe-haven flows. The greenback ended the day at 1.3452 to the euro and 93.38 to the yen. Initial and Continuing jobless Claims headline today’s economic news schedule.
The euro remained broadly unchanged on Wednesday after data came out as expected and fears that the higher exchange rate might be hurting the economy, were dismissed by ECB President Draghi who said the euro had not over-appreciated but was at a long-term average. The single currency ended the day at 1.3452 to the dollar and 125.62 to the yen. Today’s data includes Euro-zone GDP which is expected to fall by -0.7% from -0.6% previously.
The pound fell even more deeply on Wednesday after the BOE’s inflation report predicted high inflation for the next two years and at the same time revised down growth forecasts. Sterling ended the day at 1.5541 to the dollar and 0.8654 to the euro.
The yen traded mixed on Wednesday after the recent boost from the G7 meeting agreement not to target exchange rates ran out of steam. The yen ended the day at 93.38 to the dollar and 125.62 to the euro.