The Euro is trading at 1.0645 at the moment. The low has traded at 1.0619 while the high has traded at 1.0670. German Final GDP met expectations registering 0.3%. German Ifo Business Climate registered 109.0 which was better than expected. This data helped to give the Euro a little boost. However, despite this rally this morning, Euro gains are expected to stay capped. This is a result of increasing optimism towards a possible expansion of the current QE program led by the ECB. In addition, chances for a US rate hike in December remain firmly on the cards as suggested by New York Fed President William Dudley in comments he made this past Friday. As long as the updated economic releases are continuing to show positive signs of growth in the US, there will be a “strong case” for hiking rates at the next Fed meeting in December. This anticipation of a rate hike in December will continue to weigh on the market until the rate announcement is made. Therefore, expect investors to factor this into any positions that may be undertaken. Consideration for an expansion of the European QE program will also be made as well. These are actions that are likely to be the highlights of central bank activity in this last quarter of the year.
The British Pound is trading at 1.5125 currently. Sterling has traded as low as 1.5100 while the high has traded at 1.5155. Cable has remained under pressure this week as investors consider the repercussions of the Bank of England stating that UK interest rates will remain low for an extended period in hopes of giving the UK economy a great platform for sound growth going forward. UK CBI Realized Sales were lower than expected registering a 7 when 25 was anticipated. This number will likely continue to pressure the Pound to ease lower. With some important US data scheduled for release later this morning, Sterling could be in for another shift lower if the US data is quite strong. There will be more significant US data released tomorrow before the Thanksgiving festivities are celebrated. This data will include Durable Goods and Personal Spending numbers. Positive numbers here will consolidate chances for that rate hike in December.
The Japanese Yen is trading at 122.58 at this writing. USD/JPY has traded as low as 122.40 while the high has traded at 122.96. Yen has strengthened today after Japanese Flash Manufacturing PMI registered 52.8 which is better than expected. With the US soon to release economic data today, the Dollar will have a chance to test and pressure the low if US numbers are not strong. Japan will release more economic data tomorrow and Friday morning which will create a better picture of the Japanese economy. However, progress of the Yen may be limited with a rate hike in the US expected and this is sure to encourage support for the Dollar. Meanwhile, the Yen remains close to its highs for the day.
AUD/USD is trading at 0.7212 with the low trading at 0.7185 and the high trading at 0.7223.
USD/CAD is trading at 1.3359 with the low being 1.3324 and the high being 1.3377.
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.