The Euro is trading at 1.0960 at the moment. The low has traded at 1.0957 while the high has traded at 1.1027. The Euro softens a bit further this morning despite no significant European economic data released today. The downside pressure on the Euro appears to be a result of the current fears over the British referendum vote scheduled for later this year on June 23. Downside pressure is being experienced by both the Euro and the Pound and both currencies have pushed lower towards their current lows since the announcement was made this past weekend. Concerns about a British exit seem to be producing the biggest fears for both economies and the Dollar has been the beneficiary of as a result. Although the market is still well above the lows the Euro saw in the latter part of last year, this topic will continue to dominate economic headlines for the next four months. If current concerns continue to cause downside pressure to accelerate, expect central banks to intercede with expansionary policies to offset the effects such fears are causing. You can be sure that the Fed is watching this as well and this topic is sure to affect their future decisions on possible further rate hikes in the US. Expect this topic to expand as we approach the actual referendum date.
The British Pound is trading at 1.3884 at this writing. Sterling has traded at a low of 1.3878 while the high has traded at 1.4026. Earlier this morning, UK BBA Mortgage Approvals were better than expected registering 47.5K. Additionally, UK CBI Realized Sales were lower than expected with 10 recorded when 16 was anticipated. This data may have had a little effect on the Pound trading lower today but surely this data is not the main reason. As highlighted previously in the case of the Euro, the Pound has eased significantly since the referendum voting date was announced this past weekend. Fears have grown over the possible exit of the UK from the European Union. UK Prime Minister David Cameron has already stated his position for wanting Britain to remain a member of the EU highlighting Economic and Security concerns as reasons for continuing the current relationship as a member. But like the lead up to the Scottish referendum vote last year, similar fears in this instance are weighing on the financial markets and pushing the value of both the Euro and the Pound lower. The US Dollar has assumed the safe haven status in the lead-up to the referendum date.
The Japanese Yen is trading at 111.77 at the moment. The USD/JPY low has traded at 111.63 while the high has traded at 112.27. The Yen continues to attract support as further confirmation of its current safe-haven status. This caused the US Dollar to ease a bit further today despite lower than expected Japanese SPPI which registered 0.2%. Additionally, crude oil eased lower as well as both Saudi Arabia and Iran stated that there will be no immediate reduction in oil production which helped the cost per barrel to ease below $32. Investors are now looking ahead to US economic data to be released later.
AUD/USD is trading at 0.7155 with the low trading at 0.7152 and the high trading at 0.7212.
USD/CAD is trading at 1.3841 with the low trading at 1.3770 and the high trading at 1.3859.
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.