The Euro is trading at 1.2454 at the moment which is 9 pips above the low of the day at 1.2445.  The high has been 1.2516 which traded in the Asian session.  The Euro has softened versus the US dollar today.  This move lower started around the start of the European session causing the euro to slide from about 1.2490.  When the European data came out earlier, the Euro was holding around 1.2460.  Both the European Final CPI and the Final Core CPI registered expected numbers of 0.3% and 0.7% respectively.  This data may have halted the pace of the slide as the Euro has traded just above the short-term support level of 1.2450 for most of the time since the announcement.  However, pressure still remains to the downside at the moment with players eyeing the Fed rate announcement later today.  The rate announcement will probably see the Fed rates remain unchanged but of course the statement following will be surely be scrutinized with any sign of a future rate hike causing markets to move.

The British Pound is trading at 1.5723 at present.  Cable has seen a low of 1.5676 while the high has been 1.5753.  The Pound softened earlier in early European trading moving from about 1.5710 down to touch the low of the day before firming again.  UK Average Earnings Index registered a better than expected 1.4%.  Additionally, Claimant Count Change was a favorable -26.9k which was an improvement on what was forecasted.  The UK Unemployment Rate remained unchanged from the previous month at 6.0%.  This may have triggered the move towards the low as expectations were looking for the rate to return to 5.9%.  Looking ahead to the Fed Rate Announcement later today, unchanged rates are the most likely outcome.  The markets will mainly be watching what will be said in the Statement released following the rate announcement with particular attention to the timing of any future rate hikes.  Markets will definitely react to any such inferences.

The Japanese Yen is trading at 117.21 at this writing.  USD/JPY has seen a low of 116.29 which traded during the Asian session while the high has been 117.50.  USD/JPY began its rally towards the high of the day around the same time that the Euro sold off this morning.  The rise of the US Dollar was a bit surprising because earlier in the Asian session the Japanese Trade Balance registered a smaller deficit than was expected of 93 trillion Yen.  Forecasts were anticipating -99 trillion Yen.  The US Dollar remains firmly poised towards the upside in anticipation of the Fed Rate Announcement and Statement later today.  At the moment this is the ‘elephant in the room’ weighing on trading today.

AUD/USD is trading at 0.8185 with the low being 0.8139 and the high being 0.8235.

USD/CAD is trading at 1.1642 with the low being 1.1622 and the high being 1.1660.

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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.