The Euro today was able to edge up against the US Dollar and extend its gains. Hence the single currency had managed to bounce of the 6-week low it was being traded at. The Euro was boosted by the comments of a European Central Bank policymaker who stated that the interest rate hike that took place in April was certainly not a one of case. This was viewed as hawkish and hence helped the single currency to start rising. The Euro had plunged last week following Trichet’s comment that an interest rate hike will not take place before July, while the financial markets are expecting two further hikes to take place by the end of the year.
The Sterling after suffering losses during the EU session was able to recover some of its losses during the US session. It had recorded a three week low against the US Dollar following week industrial output data in the UK that lowered the expectations of a future interest rate hike. The US session opening found the GBPUSD pair at 1.6254, it was traded with significant volatility, with the pair reaching as high as 1.6321. The GBPUSD pair is currently traded at 1.6283.
The Swiss Franc today during the US Session managed to make some gains over the Dollar. The US Dollar over the period of the last week has been following a continuous uptrend against the Franc but since a 2-day low was recorded during the US Session this could be a first signal that this trend could stop or be delayed. The Swiss Franc was able to record an all-time high against the Euro with investors seeking its safe-haven nature at a period when Greece and the Eurozone are debt struggling.
The Canadian Dollar during today’s US session was able to record gains after it had already suffered a 180pip decline following the drop in commodity prices by a massive sell-off from investors seeking to lock profits. Nevertheless the CAD started gaining value as the commodity prices recorded a hike from players seeking to take the opportunity to hold log-positions after they had dropped in value.
Gold the precious metal was able to record significant gains today as the concerns in the Eurozone over the debt struggling countries had triggered its safe haven nature. The precious metal had opened the US session at USD1482.43 an ounce and had rose as high as USD1507.73 an ounce. That level appear to be a very strong resistance level as it was tested several times during the session. Gold is currently traded at USD1500.18 an ounce.