The Euro is trading at 1.0844 at the moment. The low has traded at 1.0770 while the high has traded at 1.0869. Markets are reacting to disappointing news out of China this morning where trading of their stock market was suspended for the second time this week after falling more than 7% after the open. This is the backdrop after China continues to allow the Yuan to slide lower after setting its official midpoint rate lower following Wednesday’s fix. In Europe this morning, German Factory Orders were considerably better than expected recording 1.5% while German Retail Sales were lower than expected registering 0.2%. The Italian Monthly Unemployment Rate fell to 11.3% beating expectations. In the meantime, European Retail PMI surpassed the previous month with 49.0 recorded. The European Unemployment Rate fell to 10.5% beating expectations while European Retail Sales were worse than expected registering -0.3%. The Euro subsequently rebounded from off of lows earlier in the day to rally towards the high before settling back to current levels. Following the poor performance of the Chinese stock market this morning, expectations of another down day for the US equity markets is being indicated by the futures at this writing. Investors will be wary of this as trading opens with expectations of another down trading day weighing heavily.
The British Pound is trading at 1.4563 at this writing. Sterling has traded at a low of 1.4554 while the high has traded at 1.4640. Cable has fallen to five and a half year lows against the US Dollar today as activities in China have had a broad and profound effect on all global markets. The Dollar received additional support versus the Pound with investors making consideration for its safe haven status with a future UK referendum on EU membership weighing in. This selloff of the Pound has happened despite encouraging UK Halifax HPI numbers which surpassed expectations with 1.7% recorded. Additionally, the events today in China have added to the downside pressure that Cable is under today as equity markets there have taken another hit and have set the tone for concerns of the world facing a global recession as a result of the Chinese downturn. Tomorrow will see the release of the UK Trade Balance ahead of the all-important US jobs report which could weigh further on the value of Sterling. Investors are sure to be vigilant ahead of this data.
The Japanese Yen is trading at 117.57 at the moment. USD/JPY has traded at a low of 117.32 while the high has traded at 118.75. The Yen continues to gain support with issues in China sending investors to buy the currency as a safe haven investment. No significant Japanese economic data has been released out of Japan today. Investors see Japan as an alternative to the selloff in China and expect further interest in coming days. China has allowed the Yuan to ease lower after setting its midpoint rate lower following Wednesday’s fix.
AUD/USD is trading at 0.7001 with the low being 0.6983 and the high being 0.7086.
USD/CAD is trading at 1.4134 with the low being 1.4064 and the high being 1.4156.
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.