The Euro was mostly up against the US Dollar since the prior session, rising to a day high of 1.4117, although some volatility existed in between with some dips, as low as 1.4026. The Single Currency is still very fragile and investors are not sure how to deal with it at the moment. EURUSD had dropped in the Asian session, then was lifted during European trading, based on some uplifting news that German banks will pass their stress tests. Also a drop in the US Dollar on disappointing US Durable Goods Orders boosted the Euro briefly. But overall, there is still the lingering uncertainty of what will happen with the Greek debt situation and the nightmare scenario of restructuring. As long as Euro remains above the key psychological support level of 1.4000, confidence in the currency will still hold.
Sterling jumped against the US Dollar in New York trading. It had been on the rise from the previous session, especially after the releases of US Durable Goods Orders. Meanwhile Bank of England Policy maker Andrew Sentence gave a speech today pushing for an immediate rise in interest rates stating that the British economy is ready for it. There is hope that other policy makers will follow on this. GBP opened at 1.6227 and moved up some 67 pips to highs of 1.6292. From the European open Cable has gained over 150 pips. The Pound also rose against the Euro, reaching a new two-month high, as the Sterling is seen as an alternative to the fragile Euro. EURGBP dropped to lows of 0.8631, from an open of 0.8665 and highs of 0.8676.
The Swiss Franc pushed higher versus the US Dollar all day today, making gains of over 100 pips from the European session. From highs of 0.8813, USDCHF dropped to lows of 0.8708. The Swiss Franc is considered a safe haven currency and strengthens in times of crisis. The Swissy also gained against the Euro from the start of the Asian session today. EURCHF dropped to lows of 1.2269 from Asian highs of 1.2409. The Canadian Dollar weakened significantly last Friday by almost 175 pips by the open of the European session on Wednesday.
USDCAD pair has remained on high levels since the beginning of the week with a few dips in between, almost range bound. Recently the Loonie has been softening against the greenback, weighed down by ongoing concerns of the Eurozone debt crisis which has affected commodity prices. The Canadian currency is a commodity-linked currency and usually mirrors commodity prices, especially crude oil which has been trading mostly below $100 a barrel lately. Also recent disappointing inflation data prompted dovish comments from Bank of Canada Governor, Mark Carney, who dos not believe the time is right to raise interest rates soon. USDCAD opened New York trading at 0.9790, hitting highs of 0.9796 and lows of 0.9742.
Gold has been on the rise since last Friday, hitting a new three-week high in US trading at $1,532.03 which is $4.50 over the high from Tuesday. Investors remain confident in the precious metal as flight to safety based on European debt worries. Spot gold opened the US session at the highs of the previous session, $1,527.43 and closed at $1,524. 88.