This morning the EUR/USD is showing strength, currently up at the 1.4623 level from its open of 1.4584. Sterling trading with a bid tone following Gordon Brown’s speech yesterday. The batch of recent UK data released had a positive complexion overall. UK’s Q2 GDP contraction was revised from –0.7% to –0.6%. This morning the GBP is showing strength, opening at 1.5952 and now currently bouncing at around the 1.6043 level. JPY trades lower as Japanese officials backpedaled on comments opposing intervention in Forex markets. JPY is showing weakness this morning currently down at the 89.80 level.Â
Due for release today, there is the EUR German Unemployment Change, EUR German Unemployment Rate, EUR Euro-Zone Consumer Price Index Estimate, CHF KOF Swiss Leading Indicator, USD ADP Employment Change, CAD Gross Domestic Product, USD Personal Consumption, USD Personal Core Consumption, USD Gross Domestic Product Price Index, JPY Tankan Large Manufacturers Index, JPY Tankan Non-Manufacturing Outlook, JPY Tankan Large All Industry Capex.
At the time of writing Euro-dollar is trading 1.4634/37, Sterling is 1.5934/38 Dollar-yen is bouncing around the 89.90/93 mark. On Monday the pound dropped further as it emerged that Mervyn King had just visited Sweden, where it’s central bank has imposed a negative interest rate policy on its banking system. The US Dollar has been weighed by investor risk taking, as the World Bank sees viable alternatives for a reserve currency. Euro strength has been reduced as the outlook for ECB rate hikes diminish. Japanese Yen is extremely volatile as Finance Minister’s stance on intervention has been extremely unclear.
Due for release today there is the GBP Gross Domestic Product, GBP Current Account, GBP Mortgage approvals, GBP Net Consumer Credit, EUR Euro-Zone Economic Confidence, EURO Euro-Zone Business Climate Indicator, EURO Euro-Zone Consumer Confidence, USD Consumer Confidence and JPY Industrial Production.
The Euro rose against the dollar after hitting an overnight low. The European Central Bank said private sector loans contracted for the second month and hit a record low of just 0.1% in August. Data from the national statistics office INSEE reported consumer sentiment index rose to -36 in September, confirming that the economy grew in the second quarter as French consumer morale hit a 19-month high. The Euro is down today from its open of 1.4688 and is currently at the 1.4603 level. The British pound continues to fall after Bank of England Governor Mervyn King’s bearish comments yesterday. Perceptions that the UK currency will be allowed to weaken to help the fragile British economy pushed market players to dump the pound. Cable has been having 3 days of consecutive losses and is currently down today, hovering at around the 1.5820 mark. The JPY has also had losses for the last two sessions, it opened at 89.62 today but is now down at 89.32.
Due for release today there are JPY Tokyo National Consumer Price Index, FED National Activity Index, EUR German Consumer Price Index.
The Euro is showing strength today and is currently up from its open and hovering around the 1.4701 level. Yesterday, Sterling slumped against most currencies, as FX traders took in Bank of England governor Mervyn King’s comments suggesting that a weaker Sterling could help the UK recalibrate its economy, driving the pound to a five-month low of €1.09 against the euro and $1.6023 against the dollar. This morning GBP/USD is showing further weakness and has currently dropped to around the 1.6014 mark. This morning the JPY has dropped rapidly and is currently bouncing around the 90.54 level.
Due for release today there is the CHF KOF Institute Economic Forecast, USD Durable Goods, USD Durable Goods Ex Transportation and USD New Home Sales.
The Euro, U.S. dollar and U.K. pound are lower against yen after the Fed’s statement. The Euro is showing strength this morning. Having opened at 1.4690 it is currently up at 1.4759 mark. GBP/USD has taken a dive this morning, having opened around the 1.6325 mark it is currently struggling at 1.6324. JPY has also dived rapidly this morning and is currently around the 90.54 level. Investors remain bearish on the dollar because they believe sluggish consumer spending may slow the pace of recovery in the U.S economy.
Due for release today there is USD Existing Home Sales, NZD Trade Balance, JPY Japan Meeting Minutes.
Yesterday the Euro showed significant strength closing at 1.4790. Today the Euro is bouncing near its open at around the 1.4795 level, having fallen from the gains it made earlier this morning. Cable is currently back down around the 1.6361 level haven fallen from the high it made earlier this morning of 1.6413 this morning. JPY/USD is down this morning at 90.90 level.
Due for release today there is EUR German Purchasing Manager Index, EUR Euro-Zone Purchasing Manager Index Manufacturing, GBP Bank of England Meeting Minutes, GBP BBA Loans for House Purchase, EUR Euro-Zone Industrial New Orders, NZD Westpac NZ Consumer Confidence, JPY Merchandise Trade Balance Total, JPY Adjusted Merchandise Trade Balance.
Today the EUR/USD pair is showing strength, well up from its open of 1.4675 and now currently bouncing around the 1.4788 level. GBP/USD is also showing strength today and is now up around the 1.6333 level at the time of writing. However the JPY/USD pair is showing weakness well below its open and currently down at the 91.14 mark.
Due for release today is Cad Retail sales, CAD retail sales less Autos, NZD Gross Domestic Product, USD House Price Index.
After having a strong recent rally the EURO/USD pair is now showing weakness. Technical supports 1.4640 and 1.4610. This morning the EUR has dropped from its open of 1.4711 and is now currently at the 1.4658 level. Technical supports now at 1.4675/80 and 1.4640, resistance 1.4710/15, 1,4730 and 1.4770. Cable is showing further weakness today, currently around the 1.6161 level. Cable supports now 1.6180 and 1.6150. Some of the fundamentals than continue to weigh on sterling are, the Public finances, further QE expected soon, a move to cut deposit rate paid on bank reserves held at Bank of England expected soon, there is increasing talk of Sterling being used as carry trade currency and the ongoing banking sector woes. The JPY/USD pair on the other hand is showing strength, well above its open and currently hovering around the 92.11 level.
Due for release today there is the USD leading indicators, NZD Current Account Balance, NZD Current Account Deficit.
The EURO after showing a strong rally recently has shown weakness today. The EURO has opened at 1.4744 and is currently down at the 1.4678 level. Technical support now at 1.4640/50. Sterling is showing weakness today. GBP has opened at the 1.6446 mark and has now dropped to the 1.6313 mark. Cable continues to slide, next support now 1.6290/00. JPY is showing strength this morning and has risen to around the 91.22 level.
Due for release today there is EUR German Producer Prices, EUR Euro-Zone Current Account, GBP Public Finances, GBP Public Sector Net Borrowing.
The Euro is showing strength this morning currently up at around the 1.4746 mark. The Euro has had a strong run for the last 10 days. Technical supports 1.4700/05 and 1.4680, resistances 1.4735, 1.4750, 1.4770. The Yen is looking holding steady around its open currently bouncing at around the 90.94 mark. The Yen surged to a seven month-high against the dollar yesterday, after Japan’s incoming finance minister said the government would not interfere to halt the currency’s recent ascent. The Yen reached a high of Y90.16 against the dollar, its best reading since February, when Hirohisa Fuji said the new centre-left Democratic party opposed intervention in the currency markets. After showing recent losses, Sterling is also showing strength this morning at around the 1.6537 level. Technical supports 1.6470, 1.6440/50, resistances 1.6520, 1.6550.Â
Due for release today there are, GBP retail sales, EUR Euro-Zone Trade Balance, Euro-Zone Construction Output, GBP U.K. CBI Industrial Trends Total Orders, Cad Consumer Price Index, CAD Bank Canada Consumer Price Index, CHF Swiss National Bank Interest Rate, CAD Leading Indicators and USD Housing Starts.
