The US dollar's downtrend is extending. The euro traded above $1.16 for the first time since last August. With Japanese markets closed for the second half of the Golden Week holidays, perhaps participants felt less hampered by the risk of intervention and pushed the dollar to almost JPY105.50. Despite an unexpectedly large fall in the UK's manufacturing PMI (49.2 from 50.7), sterling has pushed to its highest level in four months (~$1.4770). The Australian dollar is the main exception. It is off about 1% following the 25 bp rate cut that brought the cash rate to a new record low of 1.75%. Given the OIS and ... (full story)