The Euro is trading at 1.1008 at this writing. The low has traded at 1.1000 while the high has traded at 1.1050. The Euro has begun the week holding inside a 50 point range up until now. There has been no breakout of the range despite the release of a host of manufacturing PMI numbers out of Europe. Spanish Manufacturing PMI was lower than expected registering 51.3. Next was Italian Manufacturing PMI which was better than expected with 54.1 while French Final Manufacturing PMI was slightly lower than expected with 50.6. This was followed by German Final Manufacturing PMI which was also better than expected recording 52.1. Finally European Final Manufacturing PMI was better than expected with 52.3 registered. Despite the fact that this group of numbers were mostly favorable data, the Euro remains poised towards the downside at this point in time. The Services PMI numbers will be released this coming Wednesday. The US Unemployment numbers will be released on Friday as the final major piece of data that will likely influence directional movement of the currencies for this week.
The British Pound is trading at 1.5476 at the moment. Sterling has traded as low as 1.5422 while the high has traded at 1.5497. Cable has found a bit of support to see it slightly higher this morning at the start of the trading week. UK Manufacturing PMI showed a surprising bump higher than expected registering 55.5 when 51.3 was anticipated. This helped Sterling to gather support as it pushed on to touch the high following the release of the number. Looking ahead, there will be an Official Rate announcement by the Bank of England on Thursday. Investors are sure to have focus on that with particular interest in the forward guidance that is released in the Press Conference following the announcement. Players will be hoping for an up-to-date assessment of the UK economy and a possible hint of the interest rate picture for the future. Prior to this, UK economic data will have a few sporadic releases.
The Japanese Yen is trading at 120.58 at present. USD/JPY has traded at a low of 120.25 while the high has been 120.70. The US Dollar has firmed today versus the Yen despite the release of positive Manufacturing PMI out of Japan this morning. Japanese Manufacturing PMI beat expectations to register 52.4. However, once this data was released the US dollar found support as concerns over China came to the surface again. As China’s economic growth slows, concerns over how this will impact the rest of the global economy continue to come to the fore. The problem is no one knows how this will ultimately affect the global economy. But investors are wary that slower growth will likely affect other regions. The hope is that this slower growth will not lead to a global recession. There will be a bank holiday in Japan tomorrow while limited Japanese economic data is expected to be released this week.
AUD/USD is trading at 0.7140 with the low trading at 0.7112 and the high trading at 0.7154.
USD/CAD is trading at 1.3101 with the low being 1.3063 and high being 1.3116.
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.