The Euro rose steadily against the US Dollar ending the trading week at its highest level since the end of April, aided by optimistic remarks by Greek Central Bank President, George Provopoulos who said that Greece will be able to pay off its debt in full if it adheres to the austerity plan imposed by the joint IMF and EU program. This helped appease any fears of a Greek default. EURUSD peaked at 1.4301 in the U.S session, breaking past the European session highs of 1.4298.
Sterling proceeded higher against the broadly weaker U.S. Dollar to cap the end of the week at new two-weeks highs of 1.6508, gaining almost 100 pips from the open price of 1.6411. The Pound is benefiting from an increasingly uncertain outlook for the U.S. economy after disappointing economic data on American personal consumption and home sales today and GDP and jobs data from yesterday weighed down the greenback. The evidence of a slowdown in growth will give reason for the U.S. Fed to keep interest rates low, thereby undermining the Dollar’s appeal to foreign investors.
The Swiss Franc was the talk of the day after it hit all time highs against the Dollar and the Euro. The safe-haven currency has been in demand lately during these times of an uncertain Euro as well as Dollar. USDCHF broke the Asian session record low of 0.8531 to edge down further in New York trading after consolidating in the European session, falling from highs of 0.8584 down to 0.8510. EURCHF had a similar fate, hitting record lows in Asian trading at 1.2162, then extending down to new all-time low of 1.2146 in the last trading session of the week.
USDCAD has been range bound all week trading between highs of 0.9815 as a major resistance level and hovered above 0.9750. On the hourly chart it could be seen that USDCAD has been somewhat in a downtrend since yesterday but in a holding pattern with dips and volatility in between. USDCAD dropped from highs of 0.9818 yesterday down to lows of 0.9754 in the U.S. session. There has been a tug-and-pull between the greenback and the Loonie as investors are cautious with both currencies, as the U.S. Dollar is clearly weakening but the Canadian Dollar is also risky at the moment until the Bank of Canada interest rate decision on Tuesday. Expectations are for the rated to remain unchanged despite a forecast of an increase in Canadian GDP due out on Monday.
Spot gold prices were propelled to new three week highs of $1,538.08. The precious metal steadily rose from the open of the U.S. session at $1,524.88 up over $13 to peak at $1,538.08. Gold strength has been boosted by Greek debt concerns as well as a falling U.S. Dollar, thereby causing investors to flee to a safer investment. Gold prices and the U.S Dollar usually have an inverse relationship.