The Euro is trading at 1.1127 at this writing. The low has traded at 1.1024 while the high has been 1.1157. The Euro has made more gains today versus the US Dollar as a result of the devaluing of the Chinese Yuan by the People?s Bank of China. This is the second day in a row that they have engaged in this process of devaluing the Yuan. As a result investors continue to unwind positions funded by Euros on the Chinese currency. This has been weighing on the US Dollar as the major currencies have found support as a result of the process. Earlier today, the Italian Trade Balance was lower than expected registering 2.81 billion Euros. Additionally, European Industrial Production is -0.4% which is lower than expected. This data has had little effect on stemming the advancement of the Euro after the actions made by the Chinese central bank. The results of their actions have raised eyebrows and questions of currency manipulation have come to the forefront following their actions. The US Government has been opposed to their currency manipulations in the past believing that this has given the Chinese an unfair trade advantage.
The British Pound is trading at 1.5587 at the moment. Sterling has trade as low as 1.5533 while the high has been 1.5604. Cable remains poised to the upside as the dominating influence on the currency markets continues to be the recent actions by the People?s Bank of China following their actions to devalue the Chinese Yuan. Cable has recovered from earlier downside pressure following indifferent economic data out of the UK. The UK Average Earnings Index registered 2.4% which was below expectations while the UK Claimant Account Change beat expectations with -4.9K. The UK Unemployment Rate remained unchanged at 5.6%. Following this data, the Pound softened to the low of the day before recovering to approach the high once again. Actions taken today by the Chinese central bank will likely dominate currency trading as investors unwind positions funded using Pounds.
The Japanese Yen is trading at 124.09 at present. The USD/JPY low has traded just 2 pips lower at 124.07 while the high has been 125.28. The Yen has rallied as the morning has progressed with the US Dollar softening following the actions taken by the Chinese central bank to devalue the Yuan. In addition, Japanese PPI was lower than expected with -3.0% while both Japanese Revised Industrial Production with 1.1% and Japanese Tertiary Activity with 0.3% were better than expected. This data aided the Yen as the Dollar gave up ground. Currencies will likely attempt to go higher unless US data helps halt progress.
AUD/USD is trading at 0.7381 while the low has been 0.7217 and the high has been 0.7386.
USD/CAD is trading at 1.2952 with the low trading at 1.2951 and the high trading at 1.3157.
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.