The Euro has been trading at the highest level of the week against the US Dollar hitting highs of 1.4298 just before closing the European session today. The Single Currency was boosted by optimistic remarks made by ECB Governing Council member, George Provopoulos who mentioned that Greece is able to repay its debt in full if it sticks to it’s the EU/IMF aid programme, hinting that debt restructuring will not be necessary. This eased concerns of Greek default bringing down the Euro. Meanwhile, a weaker U.S. Dollar since yesterday’s poor U.S. GDP and jobs data was further battered today after more disappointing data indicating a drop in personal consumption as the U.S. economy slows down. The falling greenback helped give the Euro a much needed lift.
Sterling is continuously breaking two-week highs today, hitting 1.6464 against the U.S. Dollar for the first time since May 11. Previous session highs were recorded 18 pips lower at 1.6446. The Pound jumped against the US Dollar after a slew of economic data on personal consumption added to yesterday’s disappointing data, putting further pressure on the greenback. Meanwhile, EURGBP has been fighting to move up since yesterday, from lows of 0.8618 the pair climbed to 0.8690 before closing the European session today. Euro was given a boost after the weak U.S. data weighed down the Dollar.
The Swiss Franc hit new all time highs against both the U.S. Dollar as well as the Euro. The Franc is also buoyed by external developments, mainly from its major counterparts. The U.S. Dollar has been weighed down by weak economic data indicating a slowdown in the U.S. economy. The Euro is fragile lately with the Greek debt crisis and added concerns from Eurogroup President Juncker who mentioned that the IMF may not continue financing Greek debt. The Swissy is known to be a safe-haven investment and its demand has increased lately. USDCHF hit record lows of 0.8531 and EURCHF hit record lows of 1.2162 both reached during Asian trading. In the European session the pairs have been rallying but remained above the lows, being the major support levels for now.
The Japanese Yen fell against the Dollar and Euro after Fitch Ratings Agency downgraded its outlook for Japan from stable to negative today. This helped halt a declining USDJPY helping it rebound to highs of 81.21 from European session lows of 80.82. EURJPY also rebounded from lows of 114.92 to highs of 115.98.