The Euro is trading at 1.0918 at this writing.  The low has traded at 1.0878 while the high has traded at 1.0944.  The Euro has firmed over the past 2 days as the market looks to recover from softness in the commodity markets that has been a major cause of concern.  European data has been limited.  However, today saw the release of the German Trade Balance which was better than expected realizing a surplus of 20.8 billion Euros.  This information enhanced the value of the Euro which went on to trade at the high of the day following the release of this data.  Additionally, commodity prices have firmed as well which has helped solidify the progress the euro has made.  Investors still view the coming FOMC meeting next week as a pivotal time for the financial markets with expectations highly anticipating a Fed rate hike.  This expectation ensures that the markets retain some degree of balance at this time.  Some concerns will persists as the low prices for commodities with oil the particular highlight are a cause for concern.  The Fed will have to take this soft tone into consideration before making any decisions.  The last thing they want to do is have their decision trigger a return to a recessionary climate.

The British Pound is trading at 1.5065 at the moment.  Sterling has traded as low as 1.5004 while the high has traded at 1.5081.  As investors remain focused on the Bank of England’s Monetary Policy Committee announcement tomorrow, Cable has taken on additional support as market sentiment has improved a bit.  This improving sentiment has enabled the commodities to witness a small rebound with oil prices recovering from the lowest it has traded since 2009.  The BoE is widely expected to leave interest rates unchanged confirming the position they have in looking to keep rates at the lows for an extended period of time.  This statement was made with the intent of assuring investors that the UK economy will be given time to establish a solid platform for continuous growth.  Previously, the BoE highlighted that it expects economic headwinds out of Europe which will create pressure on the economy as it forges ahead.  This initiative hopes to soften the blow that these anticipated headwinds will make.

The Japanese Yen is trading at 122.59 presently.  USD/JPY has traded at 122.48 for its low of the day while the high has traded at 123.05.  Japanese Core Machinery Orders recorded 10.7% which was a vast improvement above what was expected.  Japanese M2 Money Stock registered 3.3% which is lower than expected.  Japanese Preliminary Machine Tool Orders are -17.9% which despite being negative is actually an improvement on the last month’s figures.  The Yen is seeing support as a result of the rebound in commodities that was contributing to restricting gains in currencies closely tied to the commodities.

AUD/USD is trading at 0.7204 with the low being 0.7172 and the high being 0.7237.

USD/CAD is trading at 1.3564 with the low trading at 1.3547 and the high trading at 1.3607.


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.