The Euro is trading at 1.0673 at the moment. The low has traded at 1.0630 while the high has traded at 1.0693. The Euro has recovered some of the ground given up yesterday and earlier this morning. The ECB is considering expanding their stimulus program according to comments made by its President, Mario Draghi. This will be done in order to avert a continuing decline in the European economy which has come under added pressure after the recent terrorist attacks in Paris. It is unknown what effect these recent events will do to the European economy. However, investors are expected to remain cautiously pessimistic in hopes that it will not weigh too heavily on the European and Global economy. On the other hand, the US economy continues to exhibit positive signs that will likely see the Fed raise interest rates at the next FOMC meeting in December. This was reinforced yesterday with the positive US inflation data which followed 2 consecutive months of declines. This divergence in policy between Europe and the US will enable support for the US Dollar to remain firm in the near term. Today will bring the release of updated US Housing data which will weigh into the decision of the Fed to make the anticipated rate hike.
The British Pound is trading at 1.5209 currently. Sterling has traded at a low of 1.5187 while the high has traded at 1.5248. Cable has continued to hold a range driven posture with little UK data being released over the past 2 days. The UK inflation data that was released had little impact on the directional movement of the Pound as the data met expectations for the most part. This has helped the Pound to stay evenly supported although upside potential continues to be seen as limited. The US Dollar is still taking most of the attention with a rate hike anticipated by the Fed next month. This possibility may be dampening interest usually taken by other major currencies of which the Pound is included. Recent comments by the Bank of England have highlighted that interest rates will be kept low in the region for an extended period to help offset economic headwinds the economy is currently facing and those it will face in the near future. Additionally, inflation targets for the region seem to be taking a little longer to be reached. These 2 factors will limit Sterling’s upside potential in the short term.
The Japanese Yen is trading at 123.38 presently. USD/JPY has traded at a low of 123.22 while the high has traded at 123.48. With the Bank of Japan set to announce interest rates and make a monetary policy statement tomorrow, investors are staying on the sidelines. While interest rates will remain unchanged, the current stimulus plan may be expanded to give the floundering economy an added boost. If the stimulus program is expanded, investors can expect the US Dollar to attract even more support than it currently has. When coupled with a potential rate hike in the US next month, the Yen will most likely see continued downside pressure in the near term. No economic data has been released in Japan today and USD/JPY continues to trade in a range bound fashion.
AUD/USD is trading at 0.7096 with the low being 0.7090 and the high being 0.7118.
USD/CAD is trading at 1.3332 with the low trading at 1.3297 and the high trading at 1.3336.
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.
SGT Markets – Forex Broker