British pound – Earlier losses for the pound have been unwound as the dollar takes another beating. The pound deserved another session of losses in light of a series of unhealthy data points but has trumped the unwell dollar by rebounding to $1.6553 despite an earlier tumble to $1.6452. A Nationwide house price report showed the first monthly loss in house values in three months leaving prices lower compared to a year ago by 1.3%. Meanwhile an April PMI reading for the construction sector slammed to its lowest in four-months to read 53.3 after a March reading at 56.4. The euro powered to its highest against the pound in a little over a year rising to 90.20 pence.
Japanese yen –The sudden wave of lost confidence in the dollar washed away earlier losses for the Japanese yen turning the tide into a rally. The Japanese unit is relatively quiet on account of Golden Week celebrations in Japan but today rose to ¥80.85 from a session high for the dollar at ¥81.20.
Canadian dollar – The commodity dollars continue to make headway despite a rocky start purely on account of the systemic dollar weakness. The loss of risk appetite that started on Tuesday as dealers braced for further warnings over a need to display additional vigilance in terms of homeland security initially boosted the greenback and sent commodity prices lower. Growth-sensitive units equally fell. However, while that tone remained intact during the European session, that trend has speedily evaporated with more interest in holding anything but the dollar. The Canadian unit earlier buckled to $1.0452 U.S. cents before reversing course rising to $1.0496 cents.
Aussie dollar – The Australian dollar earlier slid to its weakest in five sessions but finally used the weaker greenback to find its legs and rally back to the black for the day. And while there was some decent domestic data released on Wednesday dealers are more concerned about the lackluster performance of China and what further monetary tightening on the mainland would mean for Australian exporters already contending with a harsh climate for its currency. The Aussie slumped to $1.0789 U.S. cents having traded above $1.1010 at the start of weekly trading. It recently traded at $1.0863 cents.
Andrew Wilkinson is a Senior Market Analyst at Interactive Brokers LLC
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