US dollar held a decline from yesterday versus most major counterparts amid prospects a Russian bid to get Syria to surrender its chemical weapons may avert a US military strike, damping demand for haven currencies.
EUR/USD is trading at session highs of $1.3265 and remains slightly below the Monday’s peak at $1.3280. France will publish industrial production data at 6:45 GMT (forecast: positive). GBP/USD eased from the yesterday’s 3-month high at $1.5732 to the $1.5700 mark. Cable soared as UK Chancellor of the Exchequer George Osborne said Britain’s economy “is turning a corner and is in the early stages of a recovery”.
USD/JPY is little changed, around 99.60. EUR/JPY rose to a 2-week high at 132.22 as minutes of the Bank of Japan’s meeting last month showed policy makers agreed that the effects of monetary easing are firmly taking hold. USD/CHF is little changed, around 0.9320 after it lost more than 60 pips yesterday.
AUD/USD rose to $0.9280. NZD/USD went up to $0.8060. Australian and New Zealand dollars extended a 2-day gain as Chinese industrial production increased by 10.4% (vs. 9.9% expected). The nation’s retail sales and fixed asset investment also demonstrated solid growth. USD/CAD is trading under pressure around the 3-week low of 1.0360. Loonie found support on record high Canada building permits in July.