The Euro is trading at 1.0995 at the moment.  The low has traded at 1.0986 while the high has traded at 1.1060.  The Euro has eased towards the lower side of the range today following the release of data out of Europe this morning.  German ZEW Economic Sentiment registered 16.1 beating expectations.  On the other hand, European ZEW Economic Sentiment was worse than expected recording 33.9.  European Employment Change was slightly better than expected posting 0.3%.  The euro continues to hold on to the gains it made yesterday after the NY session began.  With investors focused on the coming FOMC meeting and the Fed announcement on interest rates that will follow the Euro looks increasingly buoyant.  The widely held view that the Fed will raise interest rates by a quarter of a point has already started to be priced into the current market.  However, an undercurrent of caution still exists as recent observations have shown that everything is not so clear cut.  Commodity prices have fallen recently with the price of oil in particular raising cause for concern.  Even the Fed will be watching these prices closely as downside pressure on oil prices translates into job losses in that industry.  This will be something the Fed will not want to welcome. 

The British Pound is trading at 1.5147 at this writing.  Sterling has traded as low as 1.5131 while the high has traded at 1.5184.  Earlier this morning, UK CPI and UK Core CPI both met expectations registering 0.1% and 1.2% respectively.  Disappointingly, UK PPI Input with -1.6% and UK PPI Output with -0.2% were both lower than expected.  UK RPI beat expectations registering 1.1% while UK HPI also beat expectations with 7.0%.  Later today will see the release of UK CB Leading Index numbers with investors looking for an improvement on -0.3% which was recorded last month.  Cable continues to trade inside of the established range today as investors prepare for the Fed announcement tomorrow.  Although a rate hike is widely expected, the announcement itself will still likely initiate broad volatility as the Fed action or inaction disperses through the financial markets.  This announcement will likely lead the markets into a more festive disposition with culmination of the central bank announcements for the year.  The holiday festivities can then begin.

The Japanese Yen is trading at 121.10 at present.  USD/JPY has traded as low as 120.57 while the high has traded at 121.22.  The US Dollar has firmed a bit versus the Yen today.  There has been no major economic data released out of Japan today.  A Fed rate hike – the first since mid-2006 – would attract yield-seeking investors to the US Dollar.  This will likely see the Dollar firm a bit more against all of its major peers including the Yen.  Ahead of the rate announcement from the Fed tomorrow, there will be the release of important PMI data from a number of regions.  Japan will release its number in the morning of the Asian session.

AUD/USD is trading at 0.7233 with the low trading at 0.7230 and the high trading at 0.7283.

USD/CAD is trading at 1.3704 with the low trading at 1.3673 and the high trading at 1.3734.


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.