The US dollar is mixed against most major currencies after US data showed inflation remained flat and capital flows showed an inflow into the US . The Labor Department reported the closely watched Consumer Price Index was unchanged in April as expected. However, compared to the same period last year, consumer prices fell 0.7% which is the largest 12-month drop since 1955.
The euro weakened against the dollar after US capital flows data showed an inflow into the US in March and Europe 's economy sank to what may be the recession's low point. As German exports tumbled and investor sentiment waned, official estimates showed the first quarter was the worst for the Eurozone.
Sterling slipped against the dollar overnight as risk-averse investors sold off riskier assets, but some of those losses were erased in early morning trade. After data showed the euro zone had sharp contractions, many investors sold off currencies considered high risk, which includes the sterling. Also weighing on the sterling was a reversal in UK stock prices. Watch the pound to remain under pressure as the road to economic health remains long and bumpy.
The Japanese yen strengthened against the dollar after US inflation figures remained mute last month and risk-averse investors sold off riskier assets and bought back safe-haven currencies such as the yen. In other news, the Bank of Japan may upgrade its assessment after March industrial production rose for the first time in six months and export figures rebounded.
The Canadian dollar weakened against the US dollar overnight but recouped those losses as Toronto 's main stock index edged higher. However, gains are being capped as oil prices fall below $58 a barrel.
The Australian and New Zealand dollar remains generally unchanged against the US dollar. Overnight, the Aussie and the kiwi strengthened against the greenback, helped by better risk appetite as regional stock markets firmed. Those gains were somewhat lost as commodity prices fell.
10-Year Treasury Note Yield : 3.147 %
Dow Jones Industrial Average : 8,374.41 + 43.33