The Euro is trading at 1.0891 at the moment.  The low has traded at 1.0874 while the high has traded at 1.0927.  The Euro is trading inside of a tight range today as the US markets remain closed while observing the Martin Luther King Day holiday.  This holiday will limit liquidity and lower the volume of trade in the forex market today.  Earlier this morning the Italian Trade Balance revealed a surplus which is better than expected registering 4.41 billion Euros.  This data helped to give the Euro a little lift earlier in the European session.  The Euro has since eased back to trade at current levels.  Looking ahead, investors will be eyeing the ECB Rate Announcement and following Press Conference which is scheduled for this coming Thursday.  Expectations are for the ECB to keep interest rates unchanged.  With headwinds out of China causing concern for the state of the global economy, the ECB will likely hold the course as it looks to maintain consistent positive economic growth out of the Euro zone.  Additionally, lower costs for energy have encouraged downside pressure on inflation moving forward.  The ECB will do all it can to ensure that the European economy continues to move forward in a positive manner achieving positive growth consistently.

The British Pound is trading at 1.4274 at this writing.  Sterling has traded at a low of 1.4245 while the high has traded at 1.4323.  Cable continues to feel downside pressure despite trading higher since hitting the lows of the day earlier this morning.  This low today represents a five-year low for the Pound versus the US dollar.  During the Asian session, the UK Rightmove HPI registered 0.5% which is better than the previous month.  This data helped lift the Pound off of its low.  Additionally, China’s central bank made new moves to ease investor speculation by helping the Yuan to trade higher than it recently has been.  Looking back, it has been the softening of the Yuan that has encouraged the wild volatility the market has seen recently as China clearly finds itself in the midst of an economic slowdown.  However, it is still important to note that while China is definitely experiencing a slowdown, the economy is growing albeit at a slower pace.  China’s slowdown coupled with lower costs for crude oil which is currently trading at 12-year lows is sending nervous ripples through the global markets.

The Japanese Yen is trading at 117.37 at present.  USD/JPY has traded at a low of 116.70 while the high has traded at 117.44.  Japanese Revised Industrial Production is below expectations recording -0.9% when 1.4% was anticipated.  Japanese Tertiary Industry Activity is -0.8% which was also lower than expected.  With China guiding the Yuan higher today and the economic data lower than expected.  The Dollar has recovered some of the losses seen last week.  This bodes well for the US Dollar as the market is likely to remain buoyant with lower liquidity and volume as a result of the bank holiday in the US today.
AUD/USD is trading at 0.6887 with the low trading at 0.6830 and the high trading at 0.6828.
USD/CAD is trading at 1.4505 with the low trading at 1.4485 and the high trading at 1.4606.
——————————————————————————————————————————————
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.