The Euro is trading at 1.1071 at the moment. The low has traded at 1.1053 while the high has traded at 1.1196. With a deal having been reached between Greece and its euro zone creditors, the Euro has eased this morning as investors now look to the potential for higher interest rates out of the US. This is actually a welcomed change for the financial markets as recent news has been mainly focused on the Greek debt crisis in emergency mode. Uncertainty over the outcome of the Greek crisis left investors feeling as if some sort of emergency action would have to be taken to stabilize markets conditions already highly susceptible to the jitters. Greece and its euro zone creditors reached a unanimous agreement after emergency all-night talks were held to reach this desired conclusion. Several euro zone parliaments in various countries must now meet to approve this new plan. The Euro initially rallied to touch the highs after confirmation of the new agreement was released. It then eased in steady trading as the Dollar found growing support with an interest rate hike beginning to be seen as increasingly likely before the end of this year. There were worries that the Greek crisis could cause the Fed to remain cautious over a rate hike. But this threat has become more distant with a resolution to the bailout crisis.
The British Pound is trading at 1.5570 at this writing. Sterling has traded as low as 1.5491 while the high has been 1.5589. The Pound has gained versus the US Dollar today once news of the Greek debt bailout agreement was confirmed. This news can be likened to the removal of shackles from a hostage with the Pound seen as one of the hostages throughout the entire Greek debt debacle. Uncertainty over a resolution continued to weigh heavily on the currency as its connection to the euro zone limited its ability to find support. However, now that a new bailout agreement has been confirmed fundamentals have taken over in reference to the Pound. As the UK economy has continued to grow, the pound should stabilize and find support based on these fundamentals. Attention of the markets now moves to the Fed and the realization that the chance for a hike in interest rates before the end of the year remains very high now that the threat of the Greek debt debacle has eased.
The Japanese Yen is trading at 123.33 at present. USD/JPY low has been 122.18 while the high has traded at 123.49. The US Dollar has gained versus the Yen today. Japanese economic data included Revised Industrial Production which met expectations registering -2.1%. Japanese Tertiary Industry Activity was lower than expected recording -0.7%. This data allowed the Dollar to gain support ahead of the new Greek debt bailout. Additional gains by the Dollar were made with the realization that the Fed will likely now proceed to raise interest rates before the end of this year. With the Greek bailout package agreed by euro zone creditors, chances for a hike in US interest rates are back on the cards.
AUD/USD is trading at 0.7427 with the low being 0.7410 while the high has been 0.7469.
USD/CAD is trading at 1.2714 with the low being 1.2679 and the high being 1.2745.
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.