The US Dollar index saw further upside overnight after reaching new 14-month highs as the DXY reached 96.80, up 0.3% and breaking through resistance with definite room to advance towards 100. Dollar Strength continues to be the central theme in the market as banks in the European zone are concerned with their exposure to the Turkish Lira with Spanish banks owed approximately $83bn by Turkish borrowers. EUR/USD continues to be sold off in droves, dropping through 1.1400 support levels to an overnight low of 1.1301 against the US Dollar with next targets at 1.12.
Domestically yesterday, US Import prices for July showed a rise of 0.1%, while small business optimism was near survey highs in the latest release of the NFIB Small Business Index as a net 23% seasonally adjusted owners planned on creating new jobs for the country.
Retail Sales released this morning exceeded expectations with MoM for July posting 0.5% and YoY for July also a better print at 6.4%, previous was 6.1% while forecast was looking for only 4.4%. Capacity Utilization, Industrial Production and Manufacturing Productions all beat previous releases. North American Equity Market are all selling off this morning as risk off is the theme so far today.