PPI Off 0.1%

The dollar fell after an unexpected drop in producer prices prompted some traders to scale back bets the Federal Reserve would raise its key interest rate to 2 percent by early next year. The U.S. currency rose in July on expectations higher interest rates would lure international investors to U.S. financial assets.
The rally from 1.7710 extends through key 1.7930 resistance and now looks for 1.8050 level. Could see gains capped here for now as overbought readings begin to emerge. Have shifted our Stop Loss to 1.7937 for a +100. Will update closing position.

Pressured Dollar

The Greenback's still pressured by Friday's PPI data. Prices of U.S. wholesale goods and services fell 0.1 percent in August, with the core producer price index also declining 0.1 percent.Attraction this week would be the August U.S. retail sales figures due tomorrow and Thursday's U.S. consumer price index. Some economists argue that none of those data will alter expectations that the Federal Reserve will hike interest rates by a quarter-point next week. Retail sales probably fell 0.1 percent in August, according to a survey of 26 Wall Street economists conducted by CBS MarketWatch. It would be the third decline in the past five months. The consumer price index is expected to rise 0.2 percent in August, with the core rate also rising 0.2 percent