http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-30.htmlConflicting ECB pressures The dollar was unable to strengthen back through the 1.57 level on Friday and weakened to test support levels around 1.5780 as US equity markets remained fragile and the US economic data again failed to have a major impact. The Euro-zone data remained generally weak with a further small decline in consumer confidence for the month while there was a bigger than expected decline in business sentiment to 0.14 in June from 0.58 the previous month. The data will reinforceMon, 30 Jun 2008 10:56:02 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-30.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-27.v02.htmlCanadian dollar tests resistance The Canadian dollar again hit selling pressure below the 1.01 level against the US currency on Thursday and dipped to 1.0140, although ranges were generally narrow. The Canadian currency failed to gain any significant support from the push in oil prices to record highs as the currency was unsettled by an increase in risk aversion as equity prices weakened sharply. Uncertainty is liable to be a key short-term feature as markets are likely to lack conviction overFri, 27 Jun 2008 10:53:03 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-27.v02.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-25.htmlFOMC statement in focus The dollar was unable to re-test Euro support levels beyond 1.55 on Tuesday and had a generally weaker tone with lows around 1.5620 following the US data. The US data releases provided no support to the US currency as consumer confidence fell to 50.4 in June from a revised 58.1 the previous month. This was the 5th lowest reading of all time and will reinforce fears over the consumer spending trends. Inflation fears were also significant with the 1-year inflationWed, 25 Jun 2008 10:23:37 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-25.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-23.htmlEuro economy under pressure The dollar was unable to make any challenge on levels below 1.55 on Friday and weakened steadily to lows just beyond 1.5650 before consolidating around 1.5620. The US currency was undermined by a renewed increase in energy and commodity prices during the day with crude reversing Thursday’s losses. The dollar was initially little changed close to 1.56 on Monday with the US currency hampered by high oil prices following the Jeddah summit where no major policyMon, 23 Jun 2008 10:34:28 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-23.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-20.htmlDollar loses ground The dollar weakened to near 1.5590 in early Europe on Thursday, but then found some relief as the Euro came under pressure against Sterling. The US currency also secured some support from a reversal in oil prices, but it was again unable to break Euro support close to the 1.5460 level with further consolidation around 1.55 and a slightly weaker dollar on Friday. The US economic data releases provided no support to the US currency. The Philadelphia Fed index weakened toFri, 20 Jun 2008 10:26:32 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-20.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-17.htmlEuro economy weakening The US currency weakened sharply in European trading on Monday with a low near 1.5520. The dollar was unsettled by a sharp rise in oil prices to record highs, although crude did retreat from its best levels later in US trading which helped the US currency rebound from lows. The German ZEW weakened to -52.4 in June from -41.4 the previous month which was the lowest reading sine 1993. The renewed deterioration will increase fears that the Euro-zone economy is underTue, 17 Jun 2008 10:30:29 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-17.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-16.htmlCPI data crucial for Sterling Sterling remained under pressure against the dollar during Friday and weakened to lows around 1.9410 before pushing back towards the 1.95 level later in US trading as support levels held. The UK currency strengthened against the Euro, but there was evidence of further selling at levels stronger than 0.7880 which curbed gains. The UK inflation data will be watched closely this week and there were hints from the Treasury that it is expecting a letter to be receivedMon, 16 Jun 2008 10:46:36 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-16.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-13.htmlDollar sales boost The US retail sales data was stronger than expected with a 1.0% increase for May after an upwardly-revised 0.4% increase previously while there was also an underlying increase of 1.2% for the month. There was an increase in initial jobless claims to 384,000 in the latest week, although this may have been distorted by the Memorial Day holiday. The net result of the data was a further increase in Treasury bond yields as 10-year yields rose to above 4.20% while marketsFri, 13 Jun 2008 10:42:11 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-13.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-12.htmlAustralian dollar retreat The Australian dollar was unable to regain the 0.95 level against the US currency on Wednesday and had a significantly weaker tone on Thursday. The domestic data offered no support for the currency with an employment decline of 19,700 for May compared with expectations of an increase of around 10,000 while the unemployment rate was also higher than expected at 4.3% which will reinforce fears over a significant slowdown in the economy. Regional equity markets were alsoThu, 12 Jun 2008 10:28:42 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-12.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-09.htmlUK inflation surge There were no significant UK developments on Friday, although a further annual decline in retail sales by the John Lewis group unsettled confidence. Sterling remained generally weak against the Euro with lows around 0.80, although it did exhibit some initial resilience. The UK currency also tested levels above 1.97 against the dollar as the US currency slumped. Underlying confidence in the UK economy will remain very weak in the short term, especially as there has been aMon, 09 Jun 2008 10:29:34 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-09.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-06.htmlECB rate-hike threat The dollar strengthened to test Euro support levels near 1.5370 in early US trading on Thursday, but then reversed course sharply. At the latest council meeting, the ECB left interest rates at the 4.00% level. In the press conference following the decision, however, ECB President Trichet took a much tougher stance than expected. Trichet stated that inflation concerns had increased and that the bank was strongly committed to avoiding second-round inflation effects. The ECBFri, 06 Jun 2008 11:11:30 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-06.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-04.htmlUK weakness confirmed Sterling dipped to lows around 0.7940 against the Euro on Tuesday before recovering back to 0.7870 as the Euro retreated sharply against the dollar. The UK currency was unable to sustain a move above 1.97 against the dollar. The UK currency remained generally weak against the dollar on Wednesday and dipped to below the 1.96 level as sentiment remained depressed while it lost ground against the Euro. The PMI index for the services sector weakened to 49.8 in May from 50.4Wed, 04 Jun 2008 10:26:50 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-04.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-02.htmlSterling fears return Sterling was unable to sustain gains against the Euro on Friday and weakened back to around 0.7860 in US trading while the UK currency found support below 1.97 against the dollar during the day. Sterling was unsettled in Asian trading on Monday by fears over the UK banking sector as the Bradford and Bingley chief executive was forced to leave office due to ill-health. There was also a major profits warning which helped trigger further speculation that the housing sectorMon, 02 Jun 2008 10:17:54 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-06-02.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-30.htmlSolid CAD fundamentals The Canadian dollar spiked stronger to levels around 0.9820 against the US dollar on Thursday before weakening back towards the 0.99 level. The Canadian currency was again influenced strongly by oil-price trends and dip in prices was generally a negative influence, although energy-market conditions remained choppy. Domestically, the current account surplus strengthened to CAD5.6bn in the first quarter of 2008 from a revised CAD0.8bn thee previous quarter which will tendFri, 30 May 2008 10:20:34 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-30.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-27.htmlEuro faces barriers to gains Following the weak Euro-zone data on Friday when there was a sharp decline in the PMI services sector with Euro-zone data generally downbeat as German consumer confidence weakened in the latest month. French housing starts also weakened to the lowest level on record since the series started in 2000 while French business confidence also continued to weaken in the latest survey. The ECB will still want to focus on inflation in the short term, especially as inflationTue, 27 May 2008 10:28:17 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-27.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-23.htmlEuro-zone economy weakening The Euro pushed to just above the 1.58 level against the dollar in early Europe on Thursday, but was unable to sustain the gains and generally drifted weaker during the day. Energy and gold prices again had an important impact on the US currency. Oil advanced to a new record high in Asia around US$135 per barrel before a retreat. As gold prices also weakened, there was increased pressure for a Euro correction weaker while there was also pressure for a correctionFri, 23 May 2008 13:21:47 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-23.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-19.htmlCAD correction threat The Canadian dollar continued to attack US dollar support levels below the 1.00 level on Friday and pushed to two-month highs near 0.9950. The Canadian dollar was boosted by renewed gains in oil prices with no significant domestic influences. The Canadian dollar will also continue to draw some near-term support from the increase in risk appetite, especially as confidence towards the North American economy has stabilised while energy prices will remain a key influence. TheMon, 19 May 2008 10:28:56 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-19.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-16.htmlDollar protection The dollar weakened following firmer than expected Euro-zone growth data on Thursday and was also unsettled by a renewed increase in oil and commodity prices. The US growth-orientated data was mixed, but the forward-looking data was marginally positive. Industrial production fell by 0.7% in April after a revised 0.2% increase the previous month and capacity use also declined. The New York manufacturing index edged lower to -3.2 in May from +0.6 the previous month, althoughFri, 16 May 2008 10:18:19 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-16.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-12.htmlPPI data boosts Sterling Sterling was trapped below the 1.95 level against the dollar in early Europe on Monday ahead of the UK data. Producer prices continued to rise strongly in April with input prices rising 2.4% over the month with an annual increase of 23.3% which was the highest increase for over 20years as energy and food prices continued to rise. There was also a stronger than expected monthly increase of 1.4% for output prices and, crucially, the core increase of 1.0% for the monthMon, 12 May 2008 10:19:45 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-12.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-09.htmlMarket caution returns Risk aversion has increased again over the past 24 hours. Equity markets have generally struggled over the past 24 hours with some retracement after the recent recovery. The Asian markets were also unsettled by weaker than expected results from US insurer AIG which renewed fears that credit difficulties could intensify again There has also been some widening of credit spreads over the past 24 hours. In response, there has been some renewed flight to quality with theFri, 09 May 2008 11:27:52 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-09.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-06.htmlPMI data undermines Sterling Sterling pushed to a high of 0.7765 against the Euro on Friday before a corrective decline to 0.7810 in New York as there was profit taking following the gains over the week. UK markets were closed on Monday and Sterling weakened during the day with a decline to 0.7860 against the Euro while there was support below 1.97 against the dollar. Underlying fears over the housing sector will continue as surveys continue to suggest a fall in prices while mortgage stressesTue, 06 May 2008 22:38:50 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-06.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-02.htmlDollar faces key payroll test The dollar broke Euro support levels near 1.55 and pushed to highs beyond 1.5430 after the US data releases. There was a further unwinding of short dollar positions while long commodity positions were also reduced and these trends tended to reinforce each other over the day. The US PMI data continued the trend for major data releases over the past few days as it was weak, but slightly stronger than expected. The index for the manufacturing sector was unchanged inFri, 02 May 2008 10:16:25 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-05-02.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-28.htmlDollar consolidation The revised University of Michigan consumer confidence index edged lower to 62.5 for April from a provisional 63.2 which will maintain fears over the outlook for consumer spending. An important element in the survey was an increase in the inflation expectations component to 4.8% from 4.3% the previous month. This is particularly significant as the Federal Reserve will need to monitor inflation trends closely. The rise in inflation expectations will certainly intensifyMon, 28 Apr 2008 10:48:24 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-28.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-25.v02.htmlDollar correction The dollar has continued to gain ground over the past 24 hours due to a combination of a shift in interest rate expectations and a squeeze on short positions The US data was mixed on Thursday, but offered some degree of forward-looking optimism. There was no evidence of recovery in the housing sector with new home sales falling to a  fresh 17-year low annual rate of 526,000 in March from a revised 575,000 rate the previous month while inventories continued to increase.Fri, 25 Apr 2008 10:45:13 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-25.v02.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-21.htmlEuro-zone tensions will be in fcous. ECB members maintained a tough stance on inflation during Friday and this will tend to limit the scope for Euro selling in the short term. There was, however, evidence that global central bank Euro buying had eased significantly on Friday with a possible perception that the Euro offered little value at current levels. Official comments on currencies will continue to be watched very closely this week. In particular, the possible divergence in commentaryMon, 21 Apr 2008 10:38:11 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-21.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-18.htmlCanadian dollar volatility The Canadian dollar was unable to strengthen through parity against the US dollar on Thursday and weakened to lows near 1.0120 before rallying in early Europe on Friday. Volatility levels remained high with the currency retreating again to 1.0085. Domestically, consumer prices rose 0.4% in March while there was a 0.2% core increase which pushed the annual rate down to 1.3% from 1.4%. The subdued core inflation data will reinforce expectations that the Bank of CanadaFri, 18 Apr 2008 10:46:13 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-18.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-17.htmlRisk conditions dominate yen The US currency retreated to 100.80 in European trading on Wednesday before rallying to 101.70 as the Morgan Stanley and Coca Cola results were better than expected. The yen was also subjected to significant selling pressure against the Euro. Results from the US banks will remain under closely scrutiny over the remainder of this week and the yen will tend to weaken if there are above-consensus results, especially if there are further heavy debt write-downs.Thu, 17 Apr 2008 10:27:42 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-17.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-16.htmlTest of G7 resolve Despite more favourable US data releases, the Euro has challenged fresh all-time highs against the dollar with a move to 1.5950 The New York manufacturing index recovered strongly to a figure of +0.6 in April from -22.2 the previous month. Although the data series is very erratic on a monthly view, the sharp improvement will boost confidence that rising US exports will provide a cushion to the manufacturing economy. Headline producer prices also rose a stronger than expectedWed, 16 Apr 2008 10:22:30 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-16.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-14.htmlG7 will be tested on policy shift At the G7 meetings late on Friday, officials announced a changed stance on currencies. The statement referred to the fact that members were concerned by recent exchange rate movements as they had potentially negative implications for economic and financial stability. The dollar was not mentioned specifically, but this was the clear target for the statement.   The evidence suggests that the Euro-zone officials were particularly keen on the change inMon, 14 Apr 2008 11:34:07 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-14.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-11.htmlG7 talks in focus The G7 meetings will be watched closely on Friday and over the weekend given the potential for a significant impact on market trends. Two key themes are likely to be under discussion over the next few days. The most important element will be discussions on the global credit crunch and risks to the financial system. G7 member countries will look at proposals to help ease global credit difficulties by relaxing collateral conditions in order to boost market liquidity. AnyFri, 11 Apr 2008 10:17:32 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-11.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-10.htmlECB Policy dilemma The dollar was unable to make any headway through 1.5680 against the Euro on Wednesday and weakened sharply to lows beyond 1.5865 in US trade before stabilising. The ECB will announce its latest interest rate decision on Thursday and the most likely outcome is that rates will be left on hold at 4.0%. If so, then the statement from ECB President Trichet will be very important for Euro sentiment. Markets will be monitoring official comments both on interest rates and theThu, 10 Apr 2008 10:22:57 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-10.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-08.htmlPressure on Bank of England There has been some support from an improvement in risk appetite and gains in the UK stock market, but this is being over-shadowed by a continuing lack of confidence in the economy. There will be further speculation over an interest rate cut at this week’s Bank of England meeting. Expectations of a 0.25% reduction in rates should have a measured Sterling impact, but speculation of a 0.50% rate cut would be more damaging. The shadow MPC committee of academicTue, 08 Apr 2008 10:45:53 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-08.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-07.htmlMarket fears ease Risk tolerances have continued to improve at the beginning of this week. Measures of credit risk have eased with the European iTraxx crossover index, for example, falling by around 20 basis points to levels significantly below the 470 basis point level, maintaining the decline from peak levels above 550 basis points at the time of the Bear Stearns collapse Asian equity markets advanced on Monday and European markets also secured modest gains even though there was evidence ofMon, 07 Apr 2008 10:06:49 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-07.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-04.htmlDollar faces payroll test The dollar pushed to highs near the 1.5510 level on Thursday in early US trade, but the dollar was unable to sustain the gains and weakened back to 1.57 on Friday The US data was mixed and had a net negative impact on the UIS currency. Initial jobless claims rose strongly to 407,000 in the latest week from a revised 369,000 the previous week which increased fears over the US labour market. The claims data will certainly restrain optimism ahead of Friday’s payrollFri, 04 Apr 2008 10:29:06 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-04.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-03.v02.htmlSterling headwinds  The UK currency has proved generally resilient over the past 24 hours with support close to 0.79 against the Euro despite generally disappointing data releases. The UK PMI index for the services dipped to 52.1 in March from 54.0 previously which suggests a significant slowdown in the economy. The latest quarterly Bank of England survey also warned over a further tightening of credit conditions while corporate failures had increased. Underlying fears over the housingThu, 03 Apr 2008 10:10:28 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-04-03.v02.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-31.htmlEuro at pivotal point The headline Euro-zone inflation data recoded a further increase to 3.5% from 3.2% the previous month. The increase in prices will maintain serious ECB concerns over inflation and the bank will want to retain a restrictive monetary policy. While the Euro-zone economy appears to be holding relatively firm, the ECB stance will continue to support the Euro with hopes that the Euro-zone can de-couple from the US deterioration. There are, however, still serious risks to thisMon, 31 Mar 2008 10:35:47 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-31.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-28.htmlSterling still under pressure The UK CBI retail survey indicated that sales were slightly stronger than expected in March. The expectations component was weaker and sales of durable goods was weak which continues to suggest an underlying weakening in spending. Consumer confidence also dipped further to a 15-year low of -19 in March from -17 previously which will reinforce fears over the outlook for spending while the Nationwide Bank reported a 0.6% drop in house prices for March with annualFri, 28 Mar 2008 12:54:23 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-28.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-25.htmlHousing data key for dollar The dollar peaked just stronger than 1.5350 against the Euro as liquidity remained at reduced levels before weakening again on Tuesday. US existing home sales recovered to an annual rate of 5.03mn in February from 4.86mn previously and inventories also fell which will increase optimism that a bottom in the market may have been found. There will, however, be further unease over price trends as there was an 8.2% annual drop in median prices over the year. While pricesTue, 25 Mar 2008 11:32:35 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-25.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-20.htmlCommodity correction boost dollar Commodity prices have been a key influence over the past 24 hours. Following a push to record highs with oil peaking above the US$110 level and gold above US$1000 per ounce, there has been a sharp downward correction with both falling by around 10%. Fund liquidation helped trigger a sharp downward move and there was also evidence of positions being unwound to boost US dollar liquidity ahead of the Easter weekend. Commodity prices have been bought as a hedgeThu, 20 Mar 2008 18:39:50 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-20.htmlhttp://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-18.htmlFed to trigger renewed volatility  The dollar strengthened back to highs just beyond 1.57 against the Euro on Monday from lows around 1.59, but underlying sentiment remained very negative as fears continued to dominate. The US growth-related data remained very weak with industrial production falling 0.5% in February while the New York manufacturing index fell to a record low of -22.2 from -11.7 the previous month. Given the financial and economic risks, there will be further speculationTue, 18 Mar 2008 11:21:19 GMThttp://www.fxstreet.com/fundamental/market-view/tim.clayton@investica.co.uk (Investica Ltd)http://www.fxstreet.com/fundamental/market-view/daily-fx-commentary/2008-03-18.html