- Watch today's video for a technical looks at USD crosses
- FED Fund futures price in a 50% chance of a rate hike in 2016 after Tarullo said in a CNBC interview he did not see it appropriate to raise rates this year, undermining Yellen's recent speech and revealing an obvious divide among officials.
- The USD was already under pressure from soft retail sales and PPI data, sending the Kiwi Dollar to 14 week highs and EURUSD breaking above 1.1460 to print a 7 week high
- Before the USD dominated the session it was the UK which saw poor domestic data, with claimant count higher (instead of contracting as expected) and wage inflation below expectations. That said wage inflation is still strong at 2.8% and only of the only signs of inflation in the economy at present. The US data soon took over though.
TODAY IN ASIA:
- NZD traders will focus on the NZ Manufacturing Index as this is a leading indicator for economic health
- Australian unemployment at 11:30 will also be closely watched. With the recent losses for the USD overnight then a lower unemployment could send the Aussie to a multi-week high.
NYLON HANDOVER: Greenback gets pummeled
The combination of firmer dovish commentary from FED officials with weak leading indicators was too much for the Greenback bulls, sending the Dollar down against majors, minors and EM markets.