Bit of a strange move in the dollar considering the data. That loss in the Empire state figures should be a warning for the rest of the month’s manufacturing data. While the PPI data wasn’t anything major it did confirm a drop in prices, which will take some heat out of inflation and thus interest rate expectations.

USD/JPY has been up to to old resistance level of 102.72 and EUr/USD is holding up too after the data induced spill. The yen is being sold in general which points to some unwinding of some safe haven trades rather than mostly dollar buying.

USD/JPY Daily chart 15 08 2014

USD/JPY Daily chart 15 08 2014