The Euro is trading at 1.0972 at this writing. The low has been 1.0941 while the high has traded at 1.0989. The Dollar is holding on to gains made after yesterda’?s Fed Rate Announcement. The Fed highlighted that the labor market and the overall economy had continued to strengthen since the last rate announcement. This point can be consolidated today following the release of the US Advance GDP data. Out of Europe this morning, both Spanish Flash CPI and Spanish Flash GDP were slightly lower than expected registering 0.0% and 1.0% respectively. The German Unemployment Change is 9K which is also lower than expected. These disappointing numbers were followed by the Dollar strengthening a bit further versus the Euro causing the Euro to trade at its low of the day before retracing to current levels. With the US data out later this morning, expect the risk to remain towards the downside for the Euro as confirmation of sustained US growth will encourage support for the greenback.
The British Pound is trading at 1.5627 at the moment. Cable has traded as low as 1.5587 while the high has been 1.5637. There has been no significant UK economic Data released today. However, Sterling has remained in a tight range. Following the Fed announcement yesterday the Pound softened to touch its lows of the day. It has held towards the lower side of its range awaiting information that will encourage its next directional move. This is likely to be realized following the US GDP data out later this morning. However, it is important to note that cable retains good support as the economy continues to grow in a manner meeting forecasts. Anticipation for a rate hike out of the UK remains one of the likely possibilities the market is coming to grips with in the short term. As long as growth continues with the consistency it has had recently the possibility of the Bank of England acting gets closer.
The Japanese Yen is trading at 124.37 at present. USD/JPY has traded at a low of 123.87 while the high has been 124.38 which is just 1 pip higher than where we are at this writing. The US Dollar has continued to post gains today in anticipation of the US GDP numbers out later this morning. This has occurred despite Japanese Preliminary Industrial Production beating expectations recording 0.8%. A positive number like this would usually encourage support for the Yen but with the US data expected out later, the US Dollar has gained instead. There will be quite a bit of significant Japanese economic data released tomorrow which will like give investors a clearer picture of the Japanese economy. Therefore gains by the Dollar following today’s data may see the market remain capped.
AUD/USD is trading at 0.7270 with the low trading at 0.7262 while the high has been 0.7322.
USD/CAD is trading at 1.2977 with the low being 1.2942 and the high being 1.2994.
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.