The Euro is trading at 1.1238 at this writing. The low has traded at 1.1227 while the high has traded at 1.1299. The US Dollar has gained versus the Euro today as limited European data and investor focus on the coming FOMC rate announcement starts to weigh on the Euro. European Final CPI and European Final Core CPI were both slightly lower than expected with 0.1% and 0.9% respectively. This data reveals that inflation in Europe continues to be adequately contained. This has led the Dollar to strengthen consistently today. At the moment the Euro remains poised towards the downside. The lower rate of inflation in Europe raises concerns that the European Central Bank may decide to add to its current stimulus program. At present the ECB QE program is about 60 billion Euros. However this softening inflation data could see the ECB increase the amount. Investors will be watching to see if the ECB looks to make such an adjustment in near future. The current ECB QE program is small in comparison to other similar programs in other regions according to ECB Vice President Vitor Constancio. Following this most recent data, the ECB has lowered its annual inflation expectations to 0.1% from 0.3% for 2015.
The British Pound is trading at 1.5419at the moment. Sterling has traded as low as 1.5329 while the high has traded at 1.5444. Cable has made gains versus the US dollar this morning after UK jobs data was released revealing the UK Unemployment rate has fallen to 5.5% beating forecasts. Additionally, UK Average Earnings Index beat expectations registering 2.9% in the process. However, UK Claimant Account Change was lower than expected with 1.2K. This data obviously enhanced the Pound and will encourage support for a hike in UK interest rates in the near term. Despite the rally by the Pound today, investors remain focused on the outcome of the FOMC meeting tomorrow with uncertainty over the result limiting chances to extend the rally. Looking ahead, the UK Retail Sales figures will be released tomorrow. Investors will be looking for continued signs of growth in this sector in the UK. A positive number here will surely substantiate continued growth objectives for the region.
The Japanese Yen is trading at 120.60 currently. USD/JPY has traded as low as 120.10 while the high has been 120.62. The US Dollar has recovered some of the ground it gave up to the Yen yesterday as investor look to position themselves ahead of the FOMC meeting tomorrow. There has been no significant economic data released out of Japan today. However, the Dollar has found support with investors highlighting that a hike in US rates will likely see further advancement in the value of the Dollar versus its peers. Tomorrow will see the release of the Japanese Trade Balance which is expect to reveal that the budget deficit is continuing to get smaller. If this proves to be the case, the Yen could possibly gain support ahead of the Fed meeting and announcement later in the day.
AUD/USD is trading at 0.7158 with the low trading at 0.7123 while the high has traded at 0.7183.
USD/CAD is trading at 1.3240 with the low being 1.3210 and the high being 1.3256.
This information has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information.