The Euro Is trading at 1.0825 at this writing. The low has traded at 1.0804 while the high has traded at 1.0868. The Euro reflects the softer tone that it held towards the end of trading yesterday with upside potential seemingly capped in the near term. On the other hand, the US Dollar appears well supported in the aftermath of the Federal Reserve interest rate hike that was made this past Wednesday. Going forward, the Fed highlighted that further rate hikes that may follow will be taken at a gradual pace and be very reliant upon positive growth and progressively improving economic data out of the US. Today’s economic data out of Europe saw the European Current Account lower than expected with 20.4 billion Euros registered. This data did little to impact the movement of the Euro this morning. The currency markets have seen activity as a result of the softer commodity prices that have been realized as of late. Oil continues to hover near its lows and the metals markets eased lower as evidence of that activity. At the moment, the markets are beginning to portray a mild resemblance of slower activity that seems to take place before the start of the festive season.
The British Pound is trading at 1.4920 at the moment. Sterling has traded as low as 1.4885 while the high has traded at 1.4950. Cable has recovered some of the ground it lost to the US Dollar yesterday as the financial markets consider the impact of the Fed rate hike and where this will lead interest rates in the future. The UK exhibited a bit of its own surprising data when UK Retail Sales were more than double expectations to register an increase of 1.7% last month. As we look ahead to the UK data expected next week, UK Final GDP is clearly one of the highlights that will be released. This information will show how the UK economy is progressing at the moment. With the Bank of England recently stating that interest rates in the UK will intentionally remain low for an extended period, investors will be looking at this data to see if there is any progression of growth continuing in the UK. Such information will confirm whether the central bank has enhanced the tepid growth in the region.
The Japanese Yen is trading at 121.33 presently. USD/JPY has traded at a low of 121.05 while the high has traded at 122.56. The Bank of Japan decided to maintain an unchanged monetary policy for Japan which includes continuing to expand the monetary base by an annual pace of 80 trillion Yen. The Japanese economy is continuing to show positive signs in its recovery while inflation remains flat. As a result of this new information, the Yen has gained versus the US Dollar today with USD trading near its low of the day versus the Yen. These gains were made slowly over the course of the day as opposed to a swift directional rally by the Yen. Consistency in its growth is the objective of the BOJ for the longer term.
AUD/USD is trading at 0.7135 with the low being 0.7111 and the high being 0.7155.
USD/CAD is trading at 1.3936 with the low trading at 1.3906 and the high trading at 1.3981.
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.December 18, 2015