The euro is trading at 1.1300 at the moment. The low has traded at 1.1295 while the high has traded at 1.1391. The euro has eased versus the US dollar today in steady European session trading. Economic data out of Europe has been limited. However, earlier this morning, French Final CPI met expectations to record 0.7% while European Industrial Production was lower than expected with -0.8% registered. The euro continues to trade near to its lows of the day. The recent rally the euro made on the back of dovish comments made by Fed Chair Janet Yellen who suggested that additional US interest rate hikes will be pushed back due to inconsistencies in the global economy and fears of a global economic slowdown that will have some effect on the US economy. With these economic headwinds a cause for worry for further Fed rate hikes, the Fed is trying to navigate its way through a minefield of economic challenges from several regions. The goal is for the US economy to continue growing in a consistent manner while making progress on the jobs sector and keeping inflationary pressures within previously designated parameters. Europe has a major role to play in the positive advancement of the global economy and it will need to address its own struggling sectors in hopes of instigating positive improvement.
The British pound is trading at 1.4227 at this writing. Sterling has traded at a low of 1.4200 while the high has traded at 1.4279. Cable appears to have found solid support around the mid-1.4190 level. As a result, the pound is holding on to recent gains above 1.4200. With no significant UK economic data released today, investors appear to be sidelined ahead of the important announcements by the Bank of England scheduled for tomorrow. In addition to an update on UK interest rates which are expected to remain unchanged, there will be the release of an updated Monetary Policy Summary which is likely to disclose the short-term economic plans of the central bank. With important challenges to consider in the future like the coming referendum, the Bank of England faces an interesting task of keeping the UK economy buoyant ahead if this important date as arguments will be made for both continued British membership and a possible British exit. This will not be an easy task with both domestic and foreign issues having huge influence on the voting populace.
The Japanese yen is trading at 109.31 at present. USD/JPY has traded at a low of 108.50 while the high has traded at 109.39. The US dollar has recovered some of its recent losses versus the yen. With Japanese officials recently hinting that intervention remained a possibility to halt the advancing yen, the US dollar has been able to pull back from its recent 18-month low. Japanese M2 Money Stock posted another 3.2% which is slightly better than expected while Japanese PPI is lower than expected with a level of -3.8% returned. This data may have also helped the US dollar find support near its recent lows.
AUD/USD is trading at 0.7650 with the low trading at 0.7643 while the high has been 0.7716.
USD/CAD is trading at 1.2804 with the low trading at 1.2750 and the high trading at 1.2817.
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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.