The Euro is trading at 1.1332 at this writing.  The low has traded at 1.1204 while the high has traded at 1.1343.  The Euro is pressing for more gains after the FOMC meeting yesterday where the Fed cut the number of forecasted rate hikes from four to two for this year.  The Euro was trading just below the 1.1090 level just prior to the announcement.  However, the Euro rallied following the announcement to see a high of the day above the 1.1230 level.  Reasons for the amendment to the Fed’s outlook relates to uncertainty within the global economy where an economic slowdown in China remains one of several challenging issues.  This has weighed on the overall outlook of the Fed despite a generally positive feel that the US economy will continue to see modest growth along with consistent improvements to the US employment sector.  This morning, the Italian Trade Balance is worse than expected registering 0.04 billion Euros while 4.33 billion Euros was anticipated.  European Final CPI met expectations registering -0.2% while European Final Core CPI is slightly better than expected with 0.8% recorded.  The European Trade Balance is better than expected posting 21.2 billion Euros.  This positive data is likely to see the Euro continue to attract support and strengthen further versus the US Dollar today.

The British Pound is trading at 1.4355 at the moment.  Sterling has traded at a low of 1.4208 while the high has traded at 1.4381.  Cable has continued to gain today ahead of the Bank of England Monetary Policy Announcement that will be out soon.  UK rates will likely remain at the low where the central bank has previously explained it intends to keep interest rates for an extended period.  This policy has remained intact since the latter half of 2015 as the UK economy was facing increasing challenges in its struggle to maintain consistent growth.  This policy will likely continue through the coming referendum scheduled for June 23 where UK citizens will decide whether or not to continue being members of the EU.  With the uncertainty surrounding this event in conjunction with other headwinds in the global economy, the BoE will be trying to navigate a trajectory of sustainable economic advancement despite the many challenging economic issues it may be facing.  Lower than expected inflation is one of the many challenges the BoE will be hoping to improve as it gives a clearer indication of the focus of Monetary Policy in its summary following the rate announcement.

The Japanese Yen is trading at 111.22 at present.  The USD/JPY low has traded at 111.12 while the high has traded at 112.96.  Since trading at the high during the Asian session, USD/JPY has eased lower with the US Dollar under increasing pressure following yesterday’s FOMC Press Conference where Fed Chair Janet Yellen walked back from the previous position of the Fed by lowering its forecasted rate hikes from four to two.  The Yen is expected to gain strongly as speculation involving the currency rises.  An alteration in the outlook of the Fed given yesterday enhances the possibility of the Yen making gains.
AUD/USD is trading at 0.7634 with the low trading at 0.7533 and the high trading at 0.7651.
USD/CAD is trading at 1.3005 with the low trading at 1.2945 and the high trading at 1.3132.
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.