The Euro is trading at 1.1173 at this writing. The low has traded at 1.1030 while the high has been 1.1181. The Euro has gained today as optimism that a new agreement for a Greek debt package can be made over the weekend. With the Greek government presenting austerity measures that are to be much more than previous commitments, hope for securing loans exceeding 50 billion Euros over the next 3 years has improved. As the changes of reaching an agreement have grown, so has the value of the Euro. Even as I have been writing this, the Euro has traded at another high of the day at 1.1184. European data out earlier today included German WPI which posted a number that was lower than the previous month of -0.2%. French Industrial Production was worse than expected with 0.4% while Italian Industrial Production registered better than expected with 0.9%. Expect the Euro to continue to rise today as more details of what has been bought to the table by Greece slowly filters through the markets. With these proposals, the chances for a new loan package preventing bankruptcy constantly improve. This is the type of encouraging news that markets have been waiting for. Although negotiations a far from over, these are all positive steps in the right direction to dispel the uncertainty that had a grip on the markets.
The British Pound is trading at 1.5520 at the moment which is actually just 3 pips lower than the high of the day at 1.5523. The low has traded at 1.5363. As news of the new proposals the Greek government has presented to its EU creditors filters through the markets, Cable has rallied nicely today. New highs today are being touched even while I continue to write this. The greatest boost given by these new proposals lowers the chances that Greece will leave the EU. This should continue to have a positive effect at lifting market sentiment. Also helping to lift Sterling was the UK Trade Balance data which reported a smaller than expected deficit of 8.0 billion Pounds. However, UK Construction Output reported a worse number registering -1.3% which has not had any effect on the current rally. Expect the current rally to continue as we approach the weekend where a decision will be made considering a new agreement for Greece with the EU.
The Japanese Yen is trading at 122.26 at present. USD/JPY has traded as low as 121.27 while the high has been 122.44. The US Dollar has found support versus the Yen this morning as optimism over a new Greek debt package increases following proposals presented to its EU creditors by the Greek government. Lower than expected Japanese data assisted the selloff of the Yen with Japanese PPI registering -2.4% and Japanese Consumer Confidence recording 41.7. Investors remain focused on the Greek debt situation as important decisions lay ahead this weekend to resolve the current impasse.
AUD/USD is trading at 0.7468 with the low being 0.7443 while the high has been 0.7496.
USD/CAD is trading at 1.2703 with the low being 1.2673 and the high being 1.2724.
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.