Forex Europe Review – Euro recovers to hit month high

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Forex News - USD gains across board as Canada’s CPI comes out lower than expectedThe Euro recovered from Wednesday lows after being lifted by some positive news to new month-highs. This came from ECB President Trichet as well as from the Greek government announcing it has reached a deal on new austerity measures totaling 6.4 billion Euro which will be derived from savings from tax hikes, more privatizations and cuts in government spending. The final draft will be presented on Friday at the final meeting with the troika (EI-IMF-EU) as they wrap up their mission on setting up the second bailout package. Euro was given a boost after yesterday’s Moody’s Greek downgrade, extending gains from the Asian session open at 1.4326 to hit highs of 1.4485 in European trading hours.

 

Sterling slid against the US Dollar after suffering a blow by dovish comments from a monetary policy maker who suggested that UK interest rates will likely remain unchanged for some time. The Pound was only given a brief boost after better than expected construction data indicating growth activity in building, but this was short-lived and GBPUSD fell again from the session high of 1.6417 to 1.6361.

 

The Swiss Franc didn’t show any clear direction in European trading. Yesterday the Swissy hit an all time high against the US Dollar and today investors who were short USDCHF are mostly unwinding their positions to take profits as the pair is now pulling back from the record low of 0.8382. USDCHF hit a session high of 0.8452 and lows of 0.8403.

 

The Japanese Yen pared losses from the earlier session against the US Dollar. Sovereign buying of the weaker Dollar by large Japanese banks help boost USDJPY in Asian trading but the rise was capped at 81.31. The pair continued to fall to a European session low of 80.56. Meanwhile, against the Euro, Yen was mostly weaker, with EURJP rising to 117.12 from the 116.27 open price.

 

 

EURUSD GBPUSD EURGBP USDCHF USDJPY
OPEN

(07:00 GMT)

1.4362 1.6344 0.8787 0.8424 80.94
DAY’S HIGH 1.4485 1.6417 0.8836 0.8452 81.01
DAY’S LOW 1.4362 1.6304 0.8785 0.8403 80.56
CLOSE

(14:00 GMT)

1.4447 1.6361 0.8829 0.8424 80.77