US Dollar (USD)
The Dollar weakened and the Euro and gained versus the Pound and the Yen as fears that a trade war will erupt between China and the U.S were subdued as it became apparent that each economy has too much to lose. The U.S is a huge market for Chinese exports and China is the largest holder of U.S government debt. NASDAQ and Dow started on the negative side, but finished slightly positive with 0.52% and 0.22% accordingly as investors turned to utilities and financials. Crude oil declined by -0.32% closing at 69.07$ a barrel. Gold (XAU) lowered by 0.54% closing at 999.5$ an ounce. Today, Retail Sales are expected higher at 1.9% versus -0.1% and the PPI is expected to rise by 0.9% versus -0.9%. Fed's Chairman Bernanke will speak about the financial crisis. This might influence interest rate expectations.
The Euro gained versus the Dollar after the European commission published updated economic forecasts that showed a possible expansion of 0.2% in the 3d quarter and 0.1% in the 4th after a contraction of -0.1% in the 2d quarter of the year. However the yearly forecast for the GDP remained -4%. Industrial Production came out -0.3% as expected versus -0.6% prior. Overall EUR/USD traded with a low of 1.4515 and a high of 1.4651. Today, German ZEW Economic Sentiment will be released, expected higher at 59.9 versus 56.1 prior.
EUR/USD - Last: 1.4610