SUMRX Dollar Slips as Data, IMF Outlook Weigh: 10-yr: +05/32..2.131%..USD/JPY: 94.25..EUR/USD: 1.3335
The Dollar Index saw aggressive selling over the course of the morning as disappointing economic data combined with record foreign sales of Treasuries ($54.5 bln) in April and the IMF downgrading its 2014 U.S. growth outlook to 2.7% (3.0% previous) weighed on the greenback. The Dollar Index ticked to 81.00 immediately following the data, but now holds near session lows at 80.65. Despite the aggressive selling, today's loss is limited to just 0.1%. Click here to see a daily Dollar Index chart.
EURUSD is -40 pips at 1.3330 as today's selling has erased all of yesterday's gains. Action has stalled at a four-month high, and the pair remains on track to post its first loss in five sessions.
GBPUSD is -20 pips at 1.5700 as trade continues to press the 200-day moving average. Early weakness pushed the pair down to the 1.5615 area, but buyers managed to regain control and produce yet another test of the key 1.5700 level.
USDCHF is flat at .9220 after withstanding yet another test of .9200 support. A lack of news flow and data has caused traders to look elsewhere as most of today's U.S. session has seen just a 30 pip range.
USDJPY is -145 pips at 94.15 as sellers pressure the pair for a fourth straight session. Today's weakness comes after the Lower House approved Prime Minister Abe's ‘third arrow' plan for growth and after the latest BOJ minutes pointed to a turnaround in the economy. Japan's tertiary industry activity is due out Sunday evening.
AUDUSD is -60 pips at .9590 as trade gives up a portion of yesterday's gains. Early buying provided a test of the .9650 area, but sellers managed to regain control after the hard currency climbed more than 300 pips off Tuesday's low. Australia's new motor vehicle sales will be released late Sunday.
USDCAD is +15 pips at 1.0170 as action has recovered all of its losses following the weak Canadian manufacturing sales report (-2.4% MoM actual v. 0.3% MoM expected). The early selling pushed the pair down to its lowest level in a month, but buyers surfaced near the 1.0125 level and ran action back above the previous two days' lows. A close above the 50-day moving average (1.0205) would be a victory for the bulls. Canada's foreign securities purchases will be announced on Monday.
