Forex Market Review – November 5, 2014

05-11-2014 12:22:12
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The Euro is trading at 1.2489 at present. The low has been 1.2474 while the high has been 1.2567. The US Dollar continues to gain versus the Euro after the release of European data and the results of the mid-term elections in the US. European Retail Sales was -1.3% while European Final Services PMI was 52.3. Both data points were less than expected and helped encourage the selloff of the Euro. Earlier in the morning Italian Services PMI was 50.8 while the Spanish Services PMI was 55.9. The Italian number was better than expected but the Spanish number was worse than expected. As the European session began, it was clear that the Republican Party would be the Majority in the US Senate as a result of yesterday’s mid-term elections. This is also seen as a positive contributor in helping the US Dollar continue to make gains. PMI numbers will be released in the US later this morning and could encourage the US Dollar to gain even more.

 

The British Pound is trading at 1.5989 at the moment. The low has been 1.5868 while the high has been 1.6021. In similar manner as what has happened with the Euro, the Pound has sold off versus the US Dollar as the US mid-term election results became clearer. With the release of the UK Services PMI which was 56.2 and lower than expectations, the Pound proceeded to touch its low of the day versus the US Dollar. Tomorrow the UK will release Production numbers but the major focus will be on the announcement on Rates that will be made by the Bank of England and then the ECB. The interest is keen with the faltering European economy raising emotions of uncertainty.

 

The Japanese Yen is trading at 114.48 at this writing. The USD/JPY low has been 113.40 while the high has been 114.59. Data points released in Japan today did not stem the surge of the US Dollar. The Japanese Monetary Base was 36.9% which was better than expected but the Japanese Average Cash Earnings was slightly lower than expectations to register 0.8%. The prominence of the US Dollar was given legs as the US mid-term election results unfolded. The Republican Party’s dominance at the polls was viewed as favorable to helping the US Dollar push higher. The BOJ meetings minutes and Japanese Leading Indicators will be the data points of interest out of Japan tomorrow.

 

AUD/USD is trading at 0.8614 with the low being 0.8610 while the high has been 0.8762.
USD/CAD is trading at 1.1450 with the low being 1.1390 and the high being 1.1466.

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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.