The US Dollar dropped to a new three-year low against the Euro after weaker than expected US employment data showed that the US economy is not ready for an interest rate hike yet and the Fed will likely maintain its current loose monetary policy. Data released today indicated that the US services sector also slowed unexpectedly in April. This weighed down the dollar against a basket of currencies. So far the greenback has weakened by over 7 percent. If growth continues to slow down and the budget deficit isn’t reduced, then there will be more trouble for the dollar. EURUSD opened the US trading session at 1.4852 and rose by 86 pips to 1.4939 by 1400GMT, creating a fresh 17-month high. The Euro failed to push further allowing for a correction as traders started to close their long positions to take profits. Meanwhile, around the same time, commodities which had until then been falling, had made a turn-around, giving some boost to the Dollar, which has an inverse relationship with commodity prices. Equities also rose in the later part of the US session.
The Pound made gains against the Dollar earlier in the day despite weak data released during the European session. Cable continued to rise into the US session hitting a high of 1.6573 the dipped to as low as 1.6498. The pair opened the session at 1.6510. Most data that has been released recently from the UK do not paint a good picture for the UK economy and things could get tough for the Sterling. On Thursday data on the British services sector are scheduled to be released. Market consensus expects the index to fall, which may reinforce the gloomy picture for the UK.
The Canadian dollar has been declining in the past two days reaching a two-week low against the U.S. dollar in the US trading session. The key driver was commodity prices which have slid significantly this week. Since the Loonie has a strong correlation to commodity prices, this has had a huge effect on the currency. At 1400GMT, the greenback rose against the Loonie with the USDCAD pair hitting a high of 0.9602, the highest since April 27. This was a gain of 65 pips from the US trading session opening level of 0.9537.
The Swiss franc hit another record high against the dollar in Wednesday’s US trading session. The Franc has generally been regarded as a safe haven asset especially in times of global uncertainty. The increase in demand makes the franc appreciate in value. The Swiss economy is famous for being stable and compared to the US, Switzerland’s economic conditions are far better. The USDCHF pair touched down to a record low of 0.8551 francs at 1400GMT but then weakened slightly as traders began to take profits. Some analysts expect Swiss National Bank is likely to tighten monetary policy this year, meaning there was further room for franc appreciation against the dollar.
Gold prices slid sharply for a third straight session. The main driver was silver which dragged down gold after the increase in margin requirements by COMEX, the commodities and futures exchange. Spot gold had hit a record high on Monday, reaching $1,575.78. The Spot price of gold opened the session at $1,532.83 then dropped down to a session low of $1,505.73. As the US Dollar falls, gold prices fall since gold prices are quoted in US Dollars.
EURUSD | USDJPY | GBPUSD | USDCHF | USDCAD | GOLD | |
OPEN
(12:00 GMT) |
1.4852 | 81.11 | 1.6510 | 0.8621 | 0.9537 | 1532.83 |
DAY’S HIGH | 1.4939 | 81.16 | 1.6573 | 0.8626 | 0.9602 | 1542.98 |
DAY’S LOW | 1.4825 | 80.42 | 1.6495 | 0.8551 | 0.9503 | 1505.73 |
CLOSE
(21:00 GMT) |
1.4830 | 80.54 | 1.6501 | 0.8616 | 0.9583 | 1515.33 |
By clicking “Continue”, you agree to the default cookie settings on our website.
Trading Point uses cookies to ensure that we provide you with the best experience while visiting our website. Some of the cookies are needed to provide essential features, such as login sessions, and cannot be disabled. Other cookies help us improve our website’s performance and your experience through personalising content, providing social media features and analysing our traffic. Such cookies may also include third-party cookies, which might track your use of our website. You may change your cookie settings at any time.
Read more, or change your cookie settings.
What are Cookies?
Cookies are small data files. When you visit a website, the website sends the cookie to your computer. Your computer stores it in a file located inside your web browser.
Cookies do not transfer viruses or malware to your computer. Because the data in a cookie does not change when it travels back and forth, it has no way to affect how your computer runs, but they act more like logs (i.e. they record user activity and remember stateful information) and they get updated every time you visit a website.
We may obtain information about you by accessing cookies, sent by our website. Different types of cookies keep track of different activities. For example, session cookies are used only when a person is actively navigating a website. Once you leave the website, the session cookie disappears.
Why are cookies useful?
We use functional cookies to analyse how visitors use our website, as well as track and improve our website’s performance and function. This allows us to provide a high-quality customer experience by quickly identifying and fixing any issues that may arise. For example, we might use cookies to keep track of which website pages are most popular and which method of linking between website pages is most effective. The latter also helps us to track if you were referred to us by another website and improve our future advertising campaigns.
Another use of cookies is to store your log in sessions, meaning that when you log in to the Members Area to deposit funds, a "session cookie" is set so that the website remembers that you have already logged in. If the website did not set this cookie, you will be asked for your login and password on each new page as you progress through the funding process.
In addition, functional cookies, for example, are used to allow us to remember your preferences and identify you as a user, ensure your information is secure and operate more reliably and efficiently. For example, cookies save you the trouble of typing in your username every time you access our trading platform, and recall your preferences, such as which language you wish to see when you log in.
Here is an overview of some of the functions our cookies provide us with:
This website uses Google Analytics, a web analytics service provided by Google, Inc. ("Google"). Google Analytics uses analytical cookies placed on your computer, to help the website analyze a user's use of the website. The information generated by the cookie about your use of the website (including your IP address) may be transmitted to and stored by Google on their servers. Google may use this information to evaluate your use of the website, to compile reports on website activity and to provide other services related to website activity and internet usage. Google may also transfer this information to third parties, where required to do so by law, or where such third parties process the information on behalf of Google. Google will not associate your IP address with any other data held. By using this website, you give your consent to Google to process data about you in the manner and for the purposes set out above.
Change Settings
Please select which types of cookies you want to be stored on your device.
We are using cookies to give you the best experience on our website.
Read more or change your cookie settings.