Dollar and yen are generally lower against commodity currencies today but remain steadily in range against Euro and Swiss. The improvement in investor sentiments is not carried through to early US session. Stocks in US open flat despite strong earnings report from Goldman Sachs and solid retail sales report. Canadian dollar's rise today is impressive consider nearly 100pts gain against dollar. Nevertheless, it's viewed as a catch up of major's rebound against dollar and anticipation of further recovery in oil prices, rather than a reversal in recent trend. Overall, we'd maintain the view that yen crosses are in consolidation only, so are dollar majors.

US headline retail sales rose for the second consecutive month by 0.6% in June and beat expectation of 0.4%. Ex-auto sales, though rose less than expected by 0.3%. PPI surged sharply by 1.8% mom in Jun and pushed yoy rate from -5.0% to -3.6%. Core PPI also rose much more than expected by 0.5% mom and sent yoy rate up from 3.0% to 3.3%.

German ZEW investor confidence unexpectedly fell for the first time in nine months from 44.8 to 39.5 in June, badly missed expectation of a rise to 47.8. Current situation gauge improved slightly from -89.7 to -89.3 though. Eurozone ZEW, on the other hand, also missed expectation by dropping from 42.7 to 39.5. Eurozone industrial production also rose less than expected by 0.5% mom only in May.

UK CPI slowed to 1.8% yoy in June, below BoE's target of 2% for the first time in nearly two years. Core CPI was unchanged at 1.6%. RPI met expectation by slowing to -1.6% yoy. UK RICS house price balance improved significantly from -43.8% to -18.1%, suggesting that the number of respondents saying prices dropped exceeded those reporting gains by 18.1 percentage points, which is the best reading since Sep 07. DCLG house price improved more than expected from -13.0% yoy to -12.5% yoy in May. BRC Sales Monitor rose 1.4% in Jun, up from 0.8% a month ago.

From Australia, NAB Business Confidence jumped from -2 to 4 in Jun, the first positive reading in 18 months.