USD hit a record low versus the CHF today due to the pressure that is suffering lately on expectations that the US monetary policy will stay loose. EUR traded close to a 17 month high, reaching up to 1.4876.It failed to test $1.50, and hit a 6 month peak versus the GBP, buoyed by stronger than expected eurozone inflation data that increased the chance of another ECB interest rate rise sooner rather than later. USD has been sold heavily since the Federal Reserve made clear to markets on Wednesday it was in no hurry to change its ultra-loose monetary policy.
CAD hit its strongest level in 3.5 years today versus the USD, shrugging off disappointing Canadian economic data and uncertainty over next week’s federal election. USD/CAD opened the trading session at 0.9493 and fell as low as 0.9448.
CHF rose 0.8% today to hit a record high 0.8625 against the USD. Swiss National Bank Chairman Philipp Hildebrand said that inflationary risks were beginning to emerge in Switzerland due to rising oil and commodity prices, while the economy was growing more strongly than expected despite the strength of the currency. Official data also showed that Switzerland’s leading growth barometer, the KOF, also rose unexpectedly in April.
AUD hold its gains against the USD today and it is still aiming the $1.1 level, having enjoyed its best month so far this year. AUD/USD opened the session trading at 1.0961 and moved as high as 1.0976. Sentiment on the U.S. currency took a hit this week after the Fed assured it was in no hurry to tighten its monetary policy. USD was on track for its biggest weekly fall in 14 weeks against a basket of currencies.
Gold rose 2% hitting 1569.1 an ounce amid thin volume today. The precious metal is set for its biggest gain in 5 months, boosted by inflation worries, a USD fall and prospects that the Fed will maintain easy money policy.