EUR/USD tumbled today to exchange at 1.3623 after German occupations information missed the business sector and French purchaser using tumbled. While brokers are expecting a play by the ECB one week from now nobody is truly certain what Mr. Draghi and cohorts will present so dealers are sitting tight.
GBP/USD tumbled 42 points today to trade at 1.6768 as the US dollar continued to strengthen after FOMC speakers began to mention interest rate increases in mid-2015. Figures this week showed UK mortgage approvals in April fell to their lowest level since August last year, suggesting the red-hot housing market, particularly in and around the capital London, may be cooling.
AUD/USD gained 41 points to trade at 0.9276 after the release of mixed data this morning. The Aussie has been supported by additional stimulus rumors from the ECB and the BoJ which is buoying the commodity currencies. Ore prices rebounded a drop after a steady decline.
USD/JPY fell by 14 points after a decline in retail sales and a drop in foreign bond buying in April. Japan’s retail sales dropped at the fastest pace in at least 14 years last month after the first consumption-tax increase since 1997 depressed consumer spending.
Gold has seen little action today holding at 1265.40 after tumbling close to $30 on Tuesday. Traders are not even buying up the cheap commodity meaning they are expecting it to continue to decline. The US dollar continues to gain momentum on strong US data and now words from the Fed that an interest rate increase in mid-2015 is possible.