The dollar advanced back close to new 12 year highs against its peers today despite mixed US data revealing that Philadelphia area manufacturing activity grew at an 11 month low this month. Philadelphia Federal Reserve Bank reported that its manufacturing index declined to 6.3 in January from December’s tally of 24.5 while experts had forecast a decrease to 19.9. New York Federal Reserve Bank had just reported that its general business conditions index increased from -3.6 in December to 10.0 in January which was well above forecasts for a reading of 5.0. Jobless claims rose by 19,000 for the week ending January 9 from 297,000 reported the previous week. US producer prices dropped 0.3% in December while a drop of 0.4% was forecast.

The Swiss franc strengthened considerably against the dollar and the euro after the SNB surprised the market today by getting rid of its 1.20 per euro exchange rate cap in an effort to decrease risk of deflation and halt the ongoing increase in value of the safe haven Swiss franc. The Swiss franc was at 4 year highs against the dollar with the pair down over 11% and EURCHF tanked over 12%. The central bank also decreased rates from -0.25% to -0.75%.

The euro weakened against the dollar holding its ground near 10 year lows. The euro still faced wide pressure to sell following yesterday’s ruling by the European Court of Justice to allow the European Central Bank to introduce stimulus measures at its next meeting scheduled for January 22.

The pound weakened against the dollar as the dollar trimmed losses after coming off in the previous session following poor US retail sales data. The pound still faced pressure from Tuesday’s data which revealed a drawdown to 0.5% for the annual rate of UK consumer inflation which bolstered predictions the Bank of England will keep interest rates unchanged for the majority of this year. The pound was stronger against the euro.

The yen strengthened against the dollar as it maintained support from safe haven demand with the pair trading near its 1 month low set yesterday. The yen has been at the front of the leader board for 2015 and data shows that it will continue to strengthen against the dollar and its peers before it hits any real reversal.

As oil trimmed losses commodity associated currencies such as the Australian, New Zealand and Canadian dollars strengthened considerably against the dollar. Both the Aussie and kiwi dollars surged over 1% and the loonie was trading near its 5 year high against the dollar.

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