The Euro is trading at 1.0994 at this writing. The Euro has gained after soft US economic figures were released yesterday. US Advance GDP was lower than expected to register 1.5% while the US Advance GDP Price Index was also lower than expected registering 1.2%. This data weighed on the US Dollar enabling the Euro to experience a rally versus the greenback. The Euro is poised near the high as an end to the trading week slowly winds down towards the close. Investors remain torn over recent comments by the Fed seem to suggest that they could raise interest rates at their next meeting that will be held in December which happens to be the final FOMC meeting for 2015. The critical thing to watch prior to the meeting is the economic data out of the US. If the data continues to portray a negative bias, the chances of a rate hike in December will diminish. So basically the decision to hike rates will be seen inside the numbers. The movement of the Euro will be dependent on the outcome of the European data over the same time frame. Negative data out of Europe will encourage the ECB to act by expanding the QE program at their next rate announcement to be held on December 3. So at this time you can be sure that investors will be vigilant in following the data as the year end decisions may set the tone for 2016.
The British Pound is trading at 1.5321 at the moment. Cable has firmed a bit following data out of the US yesterday that was lower than expectations. The Dollar softened against the Pound with US Advance GDP and US Advance GDP Price Index both lower than was anticipated. This data put into perspective exactly what investors will likely be focused on as we approach the next Fed and ECB rate announcements. Any further movement in Cable will be initiated by data outside of the UK as there is no significant UK economic data is scheduled for release today. However, there will be some important economic data released out of Japan, Europe and the US later today. This data will likely have an effect on the currency markets by its influence on the US Dollar. Depending upon what the data reveals from these regions, there could actually be some interesting gyrations in the currency markets today. As an example, you will have a Monetary Policy statement out of Japan, an update on the European Unemployment Rate and critical Spending and Income data released out of the US. This is just some of the important numbers that will be out later.
The Japanese Yen is trading at 120.97 currently. Tokyo Core CPI met expectations recording -0.2% while Japanese National Core CPI was slightly better than expected with -0.1%. Japanese Household Spending was well below expectations with -0.4% registered while the Japanese Unemployment Rate remained at 3.4%. Looking ahead, there will be a Monetary Policy Statement given by the BOJ and the release of Japanese Housing Starts. This will have an effect on where the Yen finishes trading this week.
AUD/USD is trading at 0.7102 with the low trading at 0.7069 and the high trading at 0.7109.
USD/CAD is trading at 1.3159 with the low trading at 1.3143 and the high trading at 1.3171.
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.