The Euro is trading at 1.0970 at the moment.  The low has traded at 1.0926 while the high has traded at 1.0974.  The Euro is holding steady inside the day’s trading range at present.  Earlier this morning, German Final CPI registered 0.1% meeting expectations while German WPI was worse than expected recording -0.2%.  Italian Industrial Production beat expectations with 0.5% registered.  The European Long term Refinancing Option recorded 18.3 billion Euros beating expectations of 7.5 billion Euros.  This data has not carried enough of an impact to see the Euro break out of the current range although these parameters could be challenged later when the economic data is released in the US.  Investors will be anxiously awaiting the release of updated Retail Sales and PPI numbers out of the US later this morning.  If these numbers prove to be better than expectations, the Fed will have additional proof for making their widely expected rate hike next week.  Financial markets remain cautiously poised ahead of the FOMC meetings leading up to the Fed announcement next week.
 
The British pound is trading at 1.5154 at this writing.  Sterling has traded as low as 1.5124 while the high has traded at 1.5168.  Cable is holding on to gains made earlier this week as the currency remains supported following the Bank of England monetary policy decision made yesterday.  UK interest rates continue to remain at their lows as the BoE followed expectations in keeping rates at their lows.  Earlier this morning, UK Construction output was below expectations recording 0.2% while UK Consumer Inflation Expectations were 2.0% which was the same as the previous month.  The cautious bearing of the markets exists as investors remain vigilant ahead of the Fed’s FOMC meeting next week where there is high expectation for a rate hike to be made.  The US data out later is expected to reinforce reasons for the Fed to raise interest rates for the first time since 2006.  Higher interest rates in the US would make investing in the Dollar more attractive to investors seeking higher yields.
 
The Japanese Yen is trading at 121.45 which just happens to be 2 pips above the low of the day for USD/JPY.  The USD/JPY has traded at a high of 122.23.  The Yen is trading at its highest level for the day despite no economic data being released out of the region to substantiate the move.  This Yen strength is pivotal ahead of the release of US economic data out later this morning.  Important Retail Sales and PPI data is on the agenda for release out of the US this morning.  This updated information could do much to reinforcing the need for the Fed to initiate its first rate hike since 2006.  This current bullish tone of the Yen solidifies the cautious perception the currency market bears ahead of next week’s FOMC meetings.  For Japan, next week there will be Tankan Manufacturing and Non-Manufacturing index numbers to begin the economic data released out of that region.
AUD/USD is trading at 0.7220 with the low trading at 0.7207 and the high trading at 0.7282.
USD/CAD is trading at 1.3669 with the low trading at 1.3623 and the high trading at 1.3679.
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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.