Wholesale inventories and sales are due out Wednesday in the U.S., but are not expected to have much impact on the currency. The U.S. dollar was down this morning against some of the European currencies. Focus on the recent volatility in the U.S. stock markets and global equities has caused some fears to surface on the vulnerability of the U.S. dollar to foreign capital flows. The U.S. current account deficit has been at record levels in the past year, which has sparked some concern.
The euro has fared better Wednesday amid the U.S. weakness in the equity markets and on some more positive economic data. German industrial production came in at a solid pace, up 1.1% for August. This beat expectations and left output surging at a 5.6% annual rate. Range trading is still expected for the euro in the next while.
The Australian dollar has been edging slightly higher this morning. Treasurer Costello stated that Australian economic growth is remaining at a healthy pace and that the country's current account deficit looks to be improving. Released Wednesday, employment fell for the seventh month in a row, but that had little effect on the market.
The currency update is provided by Custom House Corporate Foreign Exchange Services. More information is available by calling 1-800-242-3147. Custom House maintains branches in cities from coast-to-coast.
