Forex - Dollar up sharply as traders eye Bernanke testimony

Forex - Dollar up sharply as traders eye Bernanke testimony

Submitted by caseyb23 on Wed, 07/17/2013 - 05:03

Forex - Dollar up sharply as traders eye Bernanke testimony

Investing.com – The U.S. dollar soared against its major rivals during Wednesday's Asian in what may be a sign that traders are betting Federal Reserve Chairman Ben Bernanke will make comments that boost the greenback when he delivers congressional testimony later Wednesday.�

In Asian trading Wednesday, EUR/USD dropped 0.17% to 1.3141 after the ZEW index of economic sentiment in Germany deteriorated unexpectedly in July. The ZEW Centre for Economic Research said that its index of German economic sentiment fell to 36.3 in the current month from 38.5 in June. Analysts had expected a reading of 39.6.

Elsewhere, official data showed that consumer price inflation in the euro zone held steady at a seasonally adjusted 1.6% in June, unchanged from an initial estimate and in line with expectations. A separate report showed that euro zone exports fell 2.3% in June from April, while imports declined 2.2%. The currency bloc posted a trade surplus of EUR14.6 billion from EUR15.2 billion in April.�

GBP/USD slid 0.29% to 1.5155 after the Office for National Statistics said U.K. consumer price inflation rose 2.9% from a year earlier in June, coming in below expectations for a 3.0% increase and up from 2.7% in May.�

The ONS said the increase in annual inflation was driven by higher prices for fuel, clothing and footwear. Consumer inflation fell 0.2% on the month, compared to expectations for a 0.1% decline.�

USD/JPY jumped 0.27% to 99.38. USD/CHF advanced 0.27% to 0.9417 while USD/CAD rose 0.24% to 1.0394 as oil prices traded slightly lower.�

In U.S. economic news out Tuesday, the National Association of Home Builders/Wells Fargo housing-market index rose to 57 in July from 51 in June. The July reading is the highest since January 2006.�

The Labor Department said U.S. consumer price inflation rose 0.5% in June following a 0.1% rise in May. Economists expected a 0.3% June increase. Core CPI increased at annualized rate of 1.6% last month, in line with forecasts and slowing from 1.7% in May.

Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The Fed is aiming to keep inflation around 2% or less. Industrial production rose 0.3% in June, the biggest increase in four months.�

AUD/USD slid 0.30% to 0.9226 a day after minutes from the Reserve Bank of Australia's latest policy meeting showed that policymakers believe the current stance of the bank's policy to be appropriate.�

NZD/USD fell 0.22% to 0.7879 while the U.S. Dollar Index added 0.20% to 82.79.