The euro eased in early deals today, giving up ground won after a massive power outage across the north-eastern US states and Canada provided temporary late support yesterday. At 0900, the single currency was trading down, but still within recent ranges, at USD1.1263. Against sterling, the euro was down at STG0.7030. Before the blackout, news that the US trade deficit narrowed in June and that weekly jobless claims stayed below the crucial 400,000 level saw the dollar edge higher in yesterday's afternoon trade.
Meanwhile, the PPI data helped confirm a tame trend in US prices, with the excess capacity in the economy likely containing upside pressures. Looking to today, Geraldine Concagh, senior economist with AIB Global Treasury, said, "It's back to data watching and today sees the release of US industrial production for July as well as the preliminary reading of the University of Michigan consumer sentiment survey. On balance, the data should be dollar supportive."// www.fxcentre.com