The Euro is trading at 1.0832 at the moment. The low has been 1.0737 while the high has been 1.0849. The US Dollar continues to feel downside pressure with solid economic data released out of Europe this morning. The European Current Account recorded 26.4 billion Euros which was worse than expectations for 29.1 billion Euros. European Final CPI and Final Core CPI both met expectations registering -0.1% and 0.6% respectively. Following the release of this data, the Euro rallied to touch the current high of the day then eased back a bit to trade at current levels. The economic data adds to the recent pressure on the US Dollar which has softened on the back of weak US data recently. The weak US data raises the chances that the Fed may delay raising interest rates until later in the year instead of the mid-year time zone. The Fed clearly stated that the raising of interest rates depends on the data and how consistent it is in encouraging growth to persist in the US. These recent data releases suggest that growth may be sputtering a bit which will be definitely considered a reason for more cautious observation before acting to increase rates.
The British Pound is trading at 1.5025 currently. Sterling has traded as low as 1.4915 while the high has been 1.5054. The UK Unemployment Rate fell to 5.6% which was expected while the UK Claimant Account Change was worse than expected with -20.7K. UK Average Earnings Index is 1.7% which is lower than expected. The Pound rallied following the release of these numbers with more weight given to the lower UK Unemployment Rate than the other two numbers. Once touching the high of the day the Pound softened back to current levels but still remains poised to challenge the upside parameter of the range. With US Inflation data to be released later this morning, the Dollar is likely to be on the receiving end of more pressure following the release of these inflation numbers. We will continue to see whether the data that comes out supports the reasoning for the Fed to consider a rate increase in the near term. After considering the data that has come out this week, the chances for a near term rate hike have certainly eased a bit.
The Japanese Yen is trading at 118.74 at present. USD/JPY has traded as low as 118.56 while the high has been 119.17. Japanese Consumer Confidence was 41.7 which beat expectations. This has put the US dollar under pressure from the Yen. The Dollar still remains soft but it will take more downside pressure to encourage a break of the 118.00 key support level for USD/JPY. Overall, the Dollar remains vulnerable to the downside and may push lower pending the US economic data that is to be released later this morning.
AUD/USD is trading at 0.7813 with the low being 0.7768 while the high has been 0.7843.
USD/CAD is trading at 1.2192 with the low being 1.2135 while the high has been 1.2205.
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.