The dollar is smiling its way up!

Wow looks like all the currencies against the dollar were singing the Jay Sean song “down”! The Euro zone stress tests results really did the trick!

The yen dropped to its 15 years low last night and still no sign of government intervention. Also looks like data coming out of Japan this morning was pretty darn good.

Japan July machine orders went up to +8.8 m/m, +15.9 y/y and so did the current account at JPY 1675.9bn. Looks like we just may see the yen strengthen further today.

We also saw the Euro weaken tremendously after the stress tests results came out, particularly with trouble occurring within Portuguese and Irish banks.

The Sterling on the other hand seems to ranging! It came down as the Euro weakened, but managed to hold its ground and bounced back up. The same goes for the Aussie as well.

Anyways, I think we’re going to be seeing quite a bit of movement today considering the amount of data coming out. 

Here’s the data to watch out for today:

German trade balance – 6am GMT

German industrial production – 6am GMT

UK Industrial production – 8.30am GMT 

UK Manufacturing production – 8.30am GMT

US Fed Beige Book Economic report – 6pm GMT  

US consumer credit – 6pm GMT