Forex Review – Euro steady, Sterling recovers after weak data

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The Euro traded in a range against the Dollar after having dropped sharply in the previous session as Greek debt concerns resurfaced after the ECB rate hike news was over. Any further decline was halted by some good news from Germany that its Parliament voted this morning in favour of a motion to approve new aid for Greece giving some optimism that a debt default might be prevented. EURUSD traded between 1.4495 and 1.4442.

 

Sterling was given a jolt this morning after the release of weak economic data. UK manufacturing output recorded its biggest monthly decline since January 2009, falling worse than expected to 1.5% in April from a prior 0.2% increase. Economists predicted output to remain flat. This caused the Pound to spike down 30 pips against the Dollar in just one minute. However, Cable soon recovered those losses and traded back up at pre-news levels with little change after that. GBPUSD closed the European session at 1.6272.

 

The Swiss franc was flat against the Dollar in European session, not much change from the prior session, only just a slightly more elevated range. The Swiss Franc is at its strongest hitting record highs against the U.S. Dollar last week after disappointing U.S. jobs data dragged down the greenback and caused a flight to the safe haven Swissie. However, the Franc is expected to slowly ease off its high levels as concerns are growing that a strong currency will affect Switzerland’s exports. USDCHF traded between highs of 0.8431 and lows of 0.8408.

 

The USDJPY pair traded within a range in the European session, with some extreme spikes. Asian sovereign buying as well as Japanese importers could lift USDJPY further in coming days. USDJPY traded between highs of 80.24 and lows of 79.95.

 

EURUSD GBPUSD EURGBP USDCHF USDJPY
OPEN

(07:00 GMT)

1.4495 1.6318 0.8881 0.8421 80.11
DAY’S HIGH 1.4497 1.6319 0.8920 0.8431 80.24
DAY’S LOW 1.4442 1.6216 0.8865 0.8408 79.95
CLOSE

(14:00 GMT)

1.4459 1.6272 0.8884 0.8427 80.16

Note: Daylight Saving Time in effect for GMT