EUR/USD actually reversed declined to trade up by 4 points at 1.3650 remaining strong against the US dollar as traders expect the ECB to add stimulus next week. Just over a week before the ECB’s next policy meeting, where it is predicted to cut interest rates to stoke inflation, central-bank officials and researchers are meeting in Sintra, Portugal, to discuss current monetary thinking.
GBP/USD eased by a few points to trade at 1.6827 after BBA mortgage approvals missed expectations. The success of anti-European Union group U.K. Independence Party may damp investor enthusiasm that pushed the pound to a 17-month high against the euro last week, according to Citigroup Inc. Sterling weakened for a third day in four versus the dollar after a report by the British Bankers’ Association showed U.K. mortgage approvals declined in April.
AUD/USD gained 20 points to trade at 0.9258 reversing yesterday’s declines as markets return to normal after the US and UK holidays. There is very little data due today as traders look forward to the US session. Mario Draghi more or less assured markets that the ECB would act at its next meeting giving the commodity currencies a bump.
USD/JPY remains just under the 102 level this morning trading at 101.94 locked in the same range for several days as the US dollar gathers momentum along with the JPY which continues to show strength as the Bank of Japan assures markets that the economy is moving forward nicely meeting expectations.
Gold tumbled over $7 today to trade at 1284.00 as global tensions eased after elections in the Ukraine. According to Bloomberg, gold fell to the lowest level in almost a week in the international market, as investors assessed whether the election of Ukraine’s president will ease tensions with Russia and as the euro weakened, reducing the appeal of the commodity as a haven.