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US Dollar Rises Early Wednesday Ahead of PPI, Oil Stocks

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The US dollar rose against its major trading partners early Wednesday, except for a decline versus the Canadian dollar, ahead of the release of producer price data for April at 8:30 am ET and weekly petroleum stocks data at 10:30 am ET.

Earlier Wednesday, the Mortgage Bankers Association reported that mortgage applications rebounded in the week ended May 8 despite a small increase in average 30-year mortgage rates.

A quick summary of foreign exchange activity heading into Wednesday:

EUR/USD fell to 1.1713 from 1.1742 at the Tuesday US close and 1.1739 at the same time Tuesday morning. Eurozone GDP rose modestly in Q1, prompting the year-over-year rate to slow, according to data released overnight. European Central Bank President Christine Lagarde is due to speak at 1:15 pm ET. The next European Central Bank meeting is scheduled for June 11.

GBP/USD fell to 1.3505 from 1.3541 at the Tuesday US close and 1.3531 at the same time Tuesday morning. There are no UK data on Wednesday's schedule, but Bank of England policy board member Catherine Mann is due to speak at 10:00 am ET and again at 1:00 pm ET. The next Bank of England meeting is scheduled for June 18.

USD/JPY rose to 157.8100 from 157.6064 at the Tuesday US close and 157.5663 at the same time Tuesday morning. The Japanese current account surplus widened in March while services business sentiment declined in April, data released overnight showed. The next Bank of Japan meeting is scheduled for June 15-16.

USD/CAD fell to 1.3691 from 1.3698 at the Tuesday US close and 1.3709 at the same time Tuesday morning. Canadian consumer sentiment data for May is due to be released at 11:00 am ET. The next Bank of Canada meeting is scheduled for June 10.

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