Dollar pairs back gains on Barcelona 'Terror Attack'

The US dollar has been losing ground throughout the US session, falling back to yesterday's closing levels while terror in Barcelona underpins yen strength and weighs on risk sentiment. 

The van that crashed into the heavily populated tourist location known as Las Ramblas in Barcelona during the height of the tourist season has been confirmed by police to be a terror attack, killing at least 13 and injuring many more. This led to the paring back of gains made by the dollar that now sits up on the day at +0.08% at 93.61 and within the day's range of 93.312 - 94.080. 

As far as economic data, US weekly initial claims arrived at 232,000 and a decrease of 12,000 from the previous week. Manufacturing conditions in the region continued to advance in August according to the Philly Fed and, finally, industrial production rose 0.2% in July following an increase of 0.4% in June.

The dollar is struggling to keep its head above water on the ongoing concerns around the US economy and the Fed's inflation target. The latest downside in the dollar emanated from yesterday's dovish minutes that highlighted just how split policy makers are in respect to the economy being on target towards meeting the Fed's 2% inflation goal. In terms of levels, the DXY is simply trading in a range between the 93 and 94 handles, better bid on the month so far but down -8.42% YTD within a 52week range of 92.548 - 103.820.