The Euro is trading at 1.1244 at this writing. The low has traded at 1.1162 while the high has traded at 1.1251. German Industrial Production is worse than expected registering -1.2% while the German Trade Balance met expectations with 19.4 billion Euros reported. The French Government Budget Balance came out with -70.5 billion Euros reported which is a smaller deficit than the previous release. Earlier this morning the Euro eased to the low of the day before recovering to trade at current levels. This rally of the Euro has underlying interest over concerns for the global economy and its potential for continued economic growth. The Dollar is under pressure from investors who are unsure when the fed will continue to raise interest rates in the US as was previously anticipated following their recent rate hike this past December. Global economic headwinds are sure to cause the Fed to be more cautious with future decisions to raise rates once again thus making it harder to predict when such a decision will be actioned again. Meanwhile, the Dollar remains vulnerable to further downside pressure.
The British Pound is trading at 1.4416 at the moment. Sterling has traded at a low of 1.4389 while the high has traded at 1.4485. The UK BRC Retail Sales Monitor registered 2.6% which is an improvement on the previous monthly release. More recently this morning, the UK Trade Balance beat expectations posting a smaller deficit than anticipated of -9.9 billion Pounds. This reduction in the monthly expected trade deficit is clearly welcomed after recent information released reported that the annual trade deficit in the UK for 2015 had actually widened by 0.3 billion Pounds over the previous year. Fears for the overall global economy tend to be a strong part of current market sentiment. Looking ahead to tomorrow, investors will be looking out for the UK Manufacturing and Industrial Production data which is sure to give a clearer overview of how things are progressing with the UK economy. Investors are hoping there is signs of consistent grow taking place in these sectors. Good numbers here will encourage the Pound to push higher.
The Japanese Yen is trading at 115.00 currently. USD/JPY has traded at a low of 114.20 while the high been 115.85. Japanese M2 Money Stock was better than expected registering 3.2% while Japanese Preliminary Machine Tool Orders improved despite still being a negative number with -17.2% recorded. The Yen has continued to strengthen as a result of its safe haven status in the face of continued concerns over the global economy. As equity prices dipped, the Yen became the beneficiary as the currency risk is considered to be lower. Continued US rate hikes are likely to be made off of a more measured basis and in a more cautious tone. As such, uncertainty grows as to when the next rate hikes will take place which is helping to weigh on the dollar.
AUD/USD is trading at 0.6984 with the low being 0.6973 and the high being 0.7087.
USD/CAD is trading at 1.3914 with the low trading at 1.3851 and the high trading at 1.3960.
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.