The Euro is trading at 1.1032 at this writing. The low has traded at 1.1023 while the high has traded at 1.1125. The US Dollar has gained this morning versus the Euro. This follows a new three-year bailout proposal submitted by Greece yesterday. European creditors pledged to make some of the economic adjustments work while the full plan must still be decided upon. The Dollar gains today were made as a result of fresh jitters over the new proposals offered by Greek Government. It remains to be seen if the proposals offer changes to pensions while adding tax increases and other forms of austerity measures to convince EU creditors to take on the plan. The Fed revealed that that the policy makers need to see signs of continued strengthening in the US before interest rates can be hiked. This Greek crisis could cause the Fed to alter its future plans to raise interest rates if it is not resolved. Earlier this morning the German Trade Balance beat expectations by posting 22.8 billion Euros. This data could not halt the selloff of the Euro this morning.
The British Pound is trading at 1.5383 at present. Sterling has traded as low as 1.5356 while the high has been 1.5420. The UK Official Bank Rate remained unchanged at 0.50% following the announcement by the Bank of England. This has helped the Pound to find support and slowly carry out a move to the upside following the announcement. The main focus continues to be what is happening with the Greek debt debacle as this problem is probably keeping Cable from making any significant gains. The Bank of England policy makers have also voted to maintain asset facility purchases capped at 375 billion Pounds. Investors are now focusing on the outcome of the proposals the Greek Government has presented to its EU creditors for review. If accepted then bailout financing will continue to be given to Greece and downside pressure on the currencies should ease.
The Japanese Yen is trading at 121.48 currently. USD/JPY has traded as low as 120.46 while the high has been 121.57. The US Dollar has recovered some of the ground it lost to the Yen recently and remains poised towards the upside. Japanese Core Machinery Orders beat expectations with 0.6% registered. Japanese M2 Money stock was lower than expected recording 3.8%. In addition, Japanese Preliminary Machine Tool Orders were 6.6% which is quite a bit lower than the previous month. This mixed data resulted in a stronger US Dollar which has also continued to be a safe haven for investors as the Greek debt saga evolves. We have PPI and Consumer Confidence data to look forward to out of Japan tomorrow ahead of a big weekend as it pertains to the Greek debt situation. The EU could have a different look if things do not work out with the new proposals tabled by the Greek government.
AUD/USD is trading at 0.7450 with the low being 0.7392 while the high has been 0.7492.
USD/CAD is trading at 1.2676 with the low being 1.2673 while the high has been 1.2746.
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.