By XE Market Analysis
The Dollar extended declines that were sparked by yesterday's U.S. CPI data. EUR-USD has posted a new high for a third consecutive day, this time at 1.1721, which is the loftiest level seen since the late-August peak at 1.1733. Cable edged out a fresh six-week high of 1.3138, tracking EUR-USD higher amid broader Dollar weakness, with EUR-GBP holding in a near directionless stasis. USD-JPY and Yen crosses posted fresh highs in the early Tokyo session before settling. The new highs reflected weakness in the Japanese currency as the bullish global equity market theme continued, with spirits buoyed by the pending return of high-level trade talks between the U.S. and China (despite the latest bombastic remarks from President Trump). USD-JPY printed a fresh six-week high at 112.07 during early the Tokyo session before settling around the 111.80 mark. AUD-JPY lifted into 16-day high terrain above 88.50, while EUR-JPY logged six-week highs above 131.00. The latest Reuters poll on BoJ expectations found a consensus for the central bank to reduce stimulus, but not until 2020 or later. The Swedish krona has dropped sharply following the release of August inflation data out of Sweden, which showed headline CPI at 2.0%, below the median forecast for 2.1% y/y. This follows the Riksbank having last week pushed out its guidance for a first-of-cycle rate hike. EUR-SEK rallied over 0.5% in posting a one-week high at 10.5434. The NZD-SEK cross is showing a near 1% gain, with the NZ dollar having outperformed following a better-than-forecast manufacturing PMI survey in New Zealand, which came in at 52.0, up from 51.2 in the month prior.
