The Euro is trading at 1.1170 at the moment. The low has traded at 1.1118 while the high has traded at 1.1179. The Euro has firmed today and is trading at its high at the moment. Both the European ZEW Economic Sentiment and German ZEW Economic Sentiment were better than expected with 13.6 and 1.0 registered respectively. Despite this strong data out of Europe, the US Dollar strengthened versus the Euro to end the day slightly firmer with the Euro trading around the lows. Investors are now directing their focus towards the Fed Minutes from the last FOMC meeting that will be released today. This will indicate what the Fed Governors used to determine the reasons for not raising interest rates at the last FOMC meeting. With this information, investors will have an idea what the Fed is focused upon when considering future rate increases. This is the reason for the high anticipation of what is contained in the soon to be released Fed minutes.
The British Pound is trading at 1.4258 at this writing. Sterling has traded at a low of 1.4243 while the high has traded at 1.4307. Cable is trading just off of the low of the day as investors look ahead to critical UK jobs data scheduled for release later this morning. The Pound will likely strengthen if the UK jobs data proves to be generally better than expected. This current move lower may be investors speculating that the numbers will not be as good as anticipated. Yesterday’s UK inflation data was weaker than expected. Positive highlights were UK CPI which met expectations registering 0.3%, UK PPI Output slightly better than expected with -0.1% and UK PPI Input which was better than expected with -0.7% recorded. The remaining three inflation numbers were all worse than expected with UK RPI posting 1.3%, UK Core CPI was 1.2% and UK HPI recording 6.7%. The overall result allowed Cable to ease considerably and it currently is holding near to the recent lows. The data that will be released today will clarify how the UK economy is progressing and give investors opportunity to reposition themselves while moving forward.
The Japanese Yen Is trading at 113.50 presently. USD/JPY has traded at a low of 113.37 while the high has traded at 114.39. The Yen has rallied today as investors return to seeing the currency as a safe haven once again. Japanese Core Machinery Orders were lower than expected registering 4.2% when 4.6% was anticipated. As mentioned previously in this commentary, investors are looking ahead to the release of the Minutes from the most recent FOMC Meeting held in January. This information will allow investors to recognize what factors the Fed used in determining to keep rates unchanged at the January meeting. With continued economic headwinds anticipated in the future, these factors may enter the decision making process once again as investors try to get ahead of the Fed’s next move.
AUD/USD is trading at 0.7089 with the low trading at 0.7084 while the high has traded at 0.7120.
USD/CAD is trading at 1.3888 with the low trading at 1.3846 while the high has traded at 1.3898.
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.