The Euro is trading at 1.1391 at the moment. The low has traded at 1.1329 while the high has been 1.1420. The Euro has gained a bit more ground versus the US Dollar this morning after chances for a hike in rates in the latter half of this year were deemed more likely following comments by Fed Chair Janet Yellen yesterday. The Dollar is under pressure from all major currencies after the Fed kept rates on hold yesterday but made it clear that they will be vigilant at looking for evidence of sustained economic growth in the US economy before raising interest rates. This has caused the Fed to lower its US growth forecast as well as its interest rate projections moving forward. Investors will now have to modify their assessment of the timing of an initial rate increase taking place in the US as the Fed highlighted moderate expansion after weak growth in the first quarter of this year. Earlier, European Targeted LTRO registered 73.8 billion Euros beating expectations looking for 60 billion Euros. This Long Term Refinancing Option provides liquidity to banks which helps to keep interest rates low and stimulate growth in the region. Additionally, there is no new update of note regarding the Greek debt situation as markets remain vulnerable to new developments.
The British Pound is trading at 1.5916 at present. Sterling has traded as low as 1.5805 while the high has been 1.5929. Sterling has continued to firm today as UK Retail Sales registered 0.2% beating expectations. This enhanced the progress of Cable versus the US Dollar where good ground was made following the Fed announcement and following press conference. After the release of the UK data this morning the Pound rallied on to the high of the day which is the highest the Pound has been in the past seven months versus the Dollar. This UK Retail Sales data has highlighted continued growth taking place in the UK economy despite uncertainty surrounding the Greek debt situation. With no new agreement in place, the chance of a default by Greece continues to burden the markets making its exit from the euro zone a distinct possibility. Cable has been seen recently as a flight to safety option which has added buoyancy to the pound. New talks with European finance ministers are planned for today in Brussels, but expectations for a new deal are not very high.
The Japanese Yen is trading at 122.67 currently. USD/JPY has traded as low as 122.55 while the high has been 123.61. The Yen has gained versus the Dollar after the Fed announcement yesterday which basically added pressure to the Dollar. No Japanese economic data has been released today. However, the BOJ will make a Rate Announcement and release an updated MPC Policy Statement tomorrow. Rates will likely remain unchanged with current QE measures remaining part of the plan moving forward. Japan has seen signs of growth as result of recent stimulus measures and the BOJ will want to sustain this advancement as they look to put the Japanese economy on the path towards continued growth.
AUD/USD is trading at 0.7826 with the low being 0.7710 while the high has been 0.7841.
USD/CAD is trading at 1.2160 with the low being 1.2152 while the high has been 1.2237.
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.