FX Closing Comments

The Dollar come under pressure today, even though the closely watched core CPI number came in higher than expected. Seems that the prospect of falling housing sales and Ben Bernanke's dovish commentary combined to scale back interest rate expectations. There is a bit of secondary data in store for Thursday (leading indicators, Philly Fed survey, weekly jobless claims), as well as the influential retail sales numbers for the UK. Watch for a potential upward move in the Pound early in the morning if retail sales come in above expectation. Momentum is building for higher UK rates and the Bank of England is, more so than most, in a data dependant mood. Another bit of positive data would move the bank one notch closer to a hike.