The Euro is trading at 1.1216 at this writing.  The low has traded at 1.1168 while the high has traded at 1.1262.  The Dollar is trading lower versus the Euro as the equity markets saw weakness return overnight.  However, the market still seems convinced that there is some chance of a rate hike at the next Fed meeting due in September.  The Dollar realized substantial support this past Friday following comments from Fed Vice Chairman Stanley Fischer who said that it was still too early for the Fed to raise interest rates at the September meeting.  The European economic data released today also seemed to lend support to the Euro.  German Retail Sales were 1.4% which is a nice improvement over the previous month.  However, Italian Retail Sales were -0.3% which was lower than expectations.  European CPI Flash Estimate and European Core CPI Flash Estimate met expectations with 0.2% and 1.0% respectively.  Italian Preliminary CPI also met expectations with 0.2%.  The data seemed to keep the Euro trading above 1.1200 up to this point.  Investors remain focused towards the US Unemployment data that will be released this coming Friday.  The data will give clearer indication of the chance for a Fed rate hike following the September meeting.

The British Pound is trading at 1.5408 at the moment.  Sterling has traded as low as 1.5394 while the high was 1.5437.  The Pound is range bound today with the UK observing a bank holiday.  Cable remains poised towards the downside as the Dollar has looked likely to firm some more versus the Pound.  At the moment the Pound remains steady as investors look ahead to tomorrow when quite a bit of UK data will be released.  Positive data here may see support for a UK rate hike resurface as the UK economy continues to grow.  A continual uptick in the data will encourage investors to take another look at interest rates as the Bank of England will not want to see the economy heat up too quickly.

The Japanese Yen is trading at 121.25 at present.  USD/JPY has traded as low as 120.87 while the high has been 121.67.  The Dollar has eased off of its high versus the Yen today as support for the Yen grew.  Japanese Preliminary Industrial Production was lower than expected with -0.6% while Japanese Housing Starts are also lower than expected with 7.4%.  This data did little to stall advancement of the Yen as investors moved from equities to currencies.  At the moment the Dollar is holding steady as investors look for directional possibilities.  The US unemployment data will be one of the economic data highlights this week as investors will be looking for signs the Fed will make a move on raising interest rates in the US. 

AUD/USD is trading at 0.7114 with the low trading at 0.7107 and the high trading at 0.7165.

USD/CAD is trading at 1.3286 which is the high with the low being 1.3208.


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.