Greenback Consolidates Near Lows

At 2:00 AM June Germany PPI m/m (exp 0.2%, prev 0.3%)
June Germany PPI y/y (exp 1.8%, prev 1.9%)
At 4:30 AM UK June Retail Sales m/m (exp 0.3%, prev 0.4%)
UK June Retail Sales y/y (exp 3.5%, prev 3.9%)
At 8:30 AM Canada May Wholesale Trade m/m (exp 0.5%, prev –3.1%)
US Weekly Jobless Claims (exp 311k, prev 308k)
At 9:00 AM US June Leading Indicators (exp 0.0%, prev 0.3%)
At 12:00 PMUS July Philadelphia Fed Survey (exp 13.3, prev 18.0)

The dollar is little changed in early Thursday trading as it continues to struggle near its lows against the euro and sterling. Yesterday’s US CPI report and Congressional testimony from Fed Chairman Bernanke garnered a muted response in the currency market – as it seems clear the FOMC is at a stalemate with lingering inflationary pressure and moderating growth. As mentioned in yesterday’s preview, the trade-weighted dollar index now rests on a key multi-year support level – which could prompt some consolidation but likely prove insufficient in holding back the dollar bears.

US economic data set for release include June leading indicators and the July Philadelphia Fed survey, which are both expected to reaffirm slowing conditions in the economy. The June leading indicators are seen flat, down from 0.3% in May. Meanwhile, the July Philadelphia Fed Survey is expected to fall to 13.3 down from 18.0 from June. Also on the schedule will be Chairman Bernanke’s testimony before the Senate Banking Committee, in which he will likely reiterate yesterday’s comments.