New Zealand PPI Output (QoQ) Q2: -0.2% (prev -0.9%)
New Zealand PPI Input (QoQ) Q2: -0.3% (prev -1.1%)
PBOC Fixes Yuan Reference Rate At 6.3963 (prev 6.3966)
BoE’s Miles: Inflation Extremely Low, Will Pick Up, Hiking Cycle Likely To Be Gradual — BBG
BoE's Miles: Turning Point On Rate Is Coming Pretty Soon, Hike Would Be A Sign Of Strength In The Economy — BBG
Fitch Upgrades Greece to 'CCC'
The Pound Sterling was the top performing currency yesterday, after higher than expected UK inflation data. GBP/USD rallied up to 1.5713, but ran into selling interest there and eventually retraced back to 1.5640. However, the pair remains well bid and if the FOMC minutes today will be USD-negative, a test of 1.5790 resistance should follow soon. Key support now lies at 1.5660 and 1.5620.
The Euro was under pressure, partly from EUR/GBP sales. EUR/USD found some support at 1.1020, but short-term techs are bearish again. Intraday resistance lies at 1.1080/90, while to the downside, 1.0980 is the next tech level to watch. USD/JPY is still trading within a tight range and this is unlikely to change ahead of the FOMC minutes. Banks report good selling interest at 124.80 and around the 125.00 level, while bids are resting in the 123.75/85 support area.
AUD and NZD are mostly unchanged, while the Canadian Dollar recovered slightly after the bounce in oil prices.