The Euro is trading at 1.0760 at this writing.  The low has traded at 1.0752 while the high has traded at 1.0837.  The Dollar has gained a bit more ground this morning following European data released today.  Spanish Unemployment Change was better than expected with -55.8K recorded while German Unemployment Change was also better than expected with -14K recorded.  Both European CPI Flash Estimate and European Core CPI Flash Estimate were lower than expected with 0.2% and 0.9% registered.  Italian Preliminary CPI is slightly worse than expected with 0.0% recorded.  The Euro extended its losses versus the greenback this morning as weaker than expected data led to waning support for the Euro.  This is likely to see added pressure on the ECB to boost growth in the region as inflation remains solidly lethargic.  The ECB has an annual inflation target of just below 2% for the region.  Today’s numbers demonstrate the difficulty the European economy faces in trying to meet its targets.    The low in the Euro is an eight-month low versus the Japanese Yen and is trading at its lowest versus the Dollar since December 3 of last year.

The British Pound is trading at 1.4677 at the moment.  Sterling has traded at a low of 1.4659 while the high has traded at 1.4725.  Cable has eased further today despite the release of favorable Construction PMI data which was better than expected registering 57.8.  The low for Sterling today comes on the back of growing concerns over the state of the Chinese economy that caused huge downside pressure on the financial markets yesterday.  The Dollar was the ultimate beneficiary of these concerns as its major peers eased pack in the process.  Interest in the US Dollar represents a flight to safety as the greenback continues to garner a stronger feeling of stability than other major currencies.  Adding to the downside risk is the growing tensions between Saudi Arabia and Iran which highlights the continuing instability in the Middle East as relationships become frayed.  Looking ahead, investors will be eyeing the UK Services PMI data scheduled for release tomorrow.  This information will clarify any progress of the UK economy in relation to this sector.

The Japanese Yen is trading at 119.05 at present.  USD/JPY has traded at a low of 118.82 while the high has traded at 119.70.  The Yen has eased versus the Dollar as well today.  However, the Yen has not seemed as vulnerable to the downside as the Euro or the Pound as there seems to be an appreciation of the Yen as a safe haven currency while the Chinese economy contracts.  The Japanese Monetary Base was lower than expected with 29.5% recorded.  This information halted the slide of the Dollar and initiated a bit of support for the greenback.  There is no significant Japanese economic data scheduled for release tomorrow.
AUD/USD is trading at 0.7168 with the low being 0.7165 and the high being 0.7214.
USD/CAD is trading at 1.3928 with the low being 1.3897 and the high being 1.3952.
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.