The Euro is trading at 1.0916 at this writing.  The low has traded at 1.0825 while the high has traded at 1.0946.  The Euro has strengthened quite a bit this morning as the currency found support with Manufacturing PMI numbers released out of Europe this morning.  Spanish Manufacturing PMI was slightly lower than expected registering 53.0 while French Final Manufacturing PMI was also slightly lower than expected with 51.4 recorded.  Both Italian Manufacturing PMI and German Final Manufacturing PMI were better than expected registering 55.6 and 53.2 respectively.  European Final Manufacturing PMI is slightly better than expected as well with 53.2 recorded.  Following the release of the data this morning the Euro has rallied to touch the high of the day before retracing back to current levels.  Investors will be focusing on the economic data to see what effects recent policy decisions are having on their respective economies.  Every country seems to be striving for the same economic result which is consistent positive economic growth.  This can be assessed by the information revealed in the released data to see if the desired results of policy action are attained.

The British Pound is trading at 1.4769 at the moment.  Sterling has traded as low as 1.4692 while the high has traded at 1.4815.  Cable has seen a moderate advancement this morning off of its low of the day.  This support for Cable has taken place despite UK Manufacturing PMI being lower than expected registering 51.9.  However, UK Net Lending to Individuals was better than expected with 5.3 billion Pounds recorded.  UK M4 Money Supply is slightly lower than expected with 0.4% while UK Mortgage Approvals met expectations with 70K recorded.  This data shows that UK manufacturing continues to soften and remains an issue of concern for the UK economy.  However, the rally of the Pound today may be more of a softening of US Dollar support than a single interest in the Pound.  The US Dollar has retreated against all the major peers today as the New Year’s trading gets underway.  With the Bank of England stating recently that UK interest rates will remain at low levels for an extended period, investors will hopefully be encouraged to continue to support the UK economy as the BoE looks for a broader basis for growth moving towards the future.

The Japanese Yen is trading at 118.82 at present.  USD/JPY has traded as low as 118.70 while the high has traded at 120.46.  The Yen has gained steadily today as the US Dollar has softened across the board versus its major peers.  The Yen received a boost after Japanese Manufacturing PMI registered 52.6 which is slightly better than expected.  The softer tone of the US Dollar has coincided with firmer value for all of its major peers as investors that suspended trading over the recent festive period now look to begin the New Year looking for possible early profitable investments.  Japanese economic data will be sporadic this week so expect more focus to be directed towards other regions.
AUD/USD is trading at 0.7207 with the low being 0.7198 and the high being 07301.
USD/CAD is trading at 1.3924 with the low trading at 1.3812 and the high trading at 1.3939.
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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.