The Euro is trading at 1.1282 at the moment.  The Euro has traded as low as 1.1232 while the high has been 1.1292.  The Euro remains range bound in midday European trading.  There is a cautious tone in the market ahead of the Fed announcement later today.  In addition, the Greek debt debacle has not changed much after recent talks broke down.  Greece needs to have a new reform plan agreement in place with the current plan scheduled to expire at the end of this month.  With no new agreement in place, there remains a high chance that Greece could default on required repayments to its European creditors.  Earlier this morning, both European CPI and Final Core CPI met expectations registering 0.3% and 0.9% respectively.  Prior to the European CPI data, the Italian Trade Balance registered a better surplus than expected recording 3.74 billion Euros.  This helped give the Euro impetus towards the upside before it slowly returned to current levels.  Expect investors to stay sidelined until the release of the FOMC Statement later today that could help determine the forward guidance of the Fed. Until then the cautious feel will continue to persist in the financial markets.

The British Pound is trading at 1.5741 at present.  Sterling has traded as low as 1.5625 while the high has been 1.5755.  Cable has rallied as it has received interest as a flight to safety from the vulnerable Euro.  With Greece still trying to obtain a new package of reforms from its European creditors, the Euro continues to come under pressure.  The Pound offers an improved sense of stability although not totally removed from the pressure of the Greek debt debacle.  The UK economy continues to grow as evidenced by the economic data released out of the UK earlier this morning.  The UK Average Earnings Index registered 2.7% beating expectations while the UK Unemployment Rate remained at 5.5% meeting expectations.  The UK Claimant Account was -6.5K which was worse than expected.  Both the MPC Official Bank Rate votes and the MPC Asset Purchase Facility votes were 0-0-9 with all 9 members keeping rates on hold in the June meeting.  Cable rallied leading up to the release of the data before moving on to touch the high once it was released.  There has been a small retracement but the pound remains poised towards the upside at this point ahead of the Fed Rate Announcement later today.

The Japanese Yen is trading at 123.91 which is 7 pips off of the USD/JPY high of 123.98 today.  The low has been 123.34.  Earlier this morning, the Japanese Trade Balance registered a slightly larger deficit than expected posting -0.18 trillion Yen.  This data has given the Dollar impetus to move higher ahead of the Fed Rate Announcement later today.  The Dollar remains poised to test the high ahead of the Fed and will likely do so with any favorable supporting data.

AUD/USD is trading at 0.7682 with the low being 0.7670 and the high being 0.7757.

USD/CAD is trading at 1.2318 with the low being 1.2282 and the high being 1.2333.

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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.