The US dollar rose vs. most major currencies as investors fled to safe-haven currencies as poor economic data increased fears of a prolonged economic downturn. Orders for durable goods fell 2.5% in June, worse than forecasts of a 0.6% decline. Also hurting risk appetite was mortgage applications which were down 6.3% on the week.
The euro weakened against the dollar as renewed concerns about the economy increased risk aversion. Data from Germany , Europe 's largest economy, showed that consumer prices fell for the first time in more than 22 years. Prices in Germany fell 0.1% in July from the previous month and fell 0.6% over the previous year.
The British pound was lower against the dollar amid increased risk aversion. There was positive data as UK mortgage approvals rose to 47,584 loans in June, compared to 44,169 in the previous month. The number of home loans approved is a 14-month high and beat forecasts of an increase to 47,000, showing signs that the housing market may be improving. Not all signs pointed to recovery as consumer credit fell to 100-million in June, from a revised 200-million in the previous month. Consumer credit for the month was much lower than forecasts of 300-million.
The Japanese yen fell against the dollar even as investors increased risk aversion, due to a fall in Japanese retail sales. Data showed that retail sales slid 3% in June from a year earlier, worse than forecasts of a 2.5% decline. Sales at large retailers were down 6.7% from the previous year.
The Canadian dollar continued to fall against the dollar after reaching a 10-month high as crude oil prices fell more than $2 a barrel.
The Australian and New Zealand dollars both weakened against the dollar as commodities fell on fear of a decline in the global economic recovery. The Aussie is a commodity-linked currency and any troubles to the economic recovery would hurt higher-yielding assets. Today, investors await interest rates announcement by the Reserve Bank of New Zealand .
10-Year Treasury Note Yield : 3.6288%
Dow Jones Industrial Average : 9034.14 -62.58