2010.08.1907:04:00UTC+00Dollar Eases From 3-day High Against Most Majors

During early European deals on Thursday, the U.S. dollar pared the gains it made in Asian session against other major currencies. The dollar thus eased from a 3-day high against the euro, franc and the yen.

Investors now look forward to North American session, in which the U.S., weekly jobless claims data for the week ended August 14, leading indicators for July and the results of the Philadelphia Federal Reserve's manufacturing survey for August are slated for release.

The dollar weakened against the Swiss franc after hitting a 3-day high of 1.0467 at 2:40 am ET Thursday. The dollar-franc pair is currently worth 1.0400 with 1.035 seen as the next downside target level.

Switzerland's trade balance showed a surplus of CHF 2.88 billion in July compared to CHF 1.77 billion in June, the Federal Customs Administration said today. The expected surplus was CHF 1.82 billion.

The dollar that rose to a 3-day high of 85.93 against the yen at 2:15 am ET Thursday declined thereafter. As of now, the dollar-yen pair is worth 85.60. The next downside target level for the US currency is seen at 85.2.

The dollar climbed to a 3-day high of 1.2774 against the euro before losing ground at 3:35 am ET Thursday. The dollar is presently worth 1.2830 per euro. If the dollar drops further, it may likely target the 1.291 level.

German annual producer price inflation continued to increase in July, a report by the Federal Statistical Office showed today. The producer price index, or PPI, rose 3.7% year-on-year in July, faster than a 1.7% growth in the previous month. Producer prices increased for the fourth consecutive month. Economists were looking for an increase of 3.3%.

On a monthly basis, the PPI rose 0.5% in July, slower than a 0.6% growth in the previous month. However, the monthly producer price inflation rose for sixth straight month. Economists had expected an increase of 0.1%.

The dollar jumped to 1.5512 against the pound by about 4:00 am ET Thursday. But the dollar plunged thereafter as the pound soared on strong U.K. retail sales report. Presently, the dollar is worth 1.5640 per pound. On the downside, 1.569 is seen as the next target level for the US currency.

U.K.'s seasonally adjusted retail sales volume including automotive fuel rose 1.1% month-on-month in July, following the 0.7% rise in June, the Office for National Statistics said. Economists had forecast a 0.3% increase.

On an annual basis, retail sales including automotive fuel grew 1.3% in July after rising 1.1% in June. Retail sales increased for the sixth straight month.

U.K.'s public finance statistics and the money supply data - both for the month of July, which were also released at the same time likely influenced the pound.

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