The Euro hit a one-month high against a broadly weak US Dollar. Firstly the Euro was buoyed by the good news that Greece will receive its next aid payment and avoid restructuring its debt. Also, the conclusion of the troika mission to put in place the second bailout plan helped lift the Euro. Meanwhile the Dollar was weakened after poor non-farm payroll data which suggested the U.S. economy is on a longer road to recovery than expected. EURUSD climbed to a new month high of 1.4641, gaining 153 pips from the U.S. session open price of 1.4488.
Sterling dropped to a four-week low against the Euro in the U.S session, pushed down by the stronger Single Currency which was lifted by a wave of optimism on a Greek debt solution. Interest rate differentials also lifted the Euro against the Pound, as the EU will likely raise interest rates before the UK, as there is more evidence of slow UK economic recovery. EURGBP edged up to highs of 0.8992 from session low of 0.8867. Against the greenback, the Pound pared losses against a weak dollar after data showed U.S. jobs growth slowed sharply in May, reinforcing the view that the world’s largest economy is stuck in a soft patch. GBPUSD rose to highs of 1.6437 from lows of 1.6290 in US trading hours.
The greenback tumbled to a new all-time low against the safe-haven Swiss Franc. After news that U.S. non-farm payrolls only rose by 54,000 in May and unemployment rate was up to 9.1%, risk aversion caused investors to demand the safer Swissy, as the Dollar is now vulnerable to depreciating further if US growth slumps in the long-term. USDCHF plunged to the lowest level on record to 0.8334 from the US session open at 0.8412.
The Canadian dollar recovered losses made when the US jobs report caused it to drop against the greenback. The Loonie is a commodity-linked currency, so the weak employment report and a weaker US economy leads to a drop in oil prices, and consequently a drop in the Canadian Dollar. However, a later report that Canada’s Conservative government will focus on jobs and growth while eliminating the federal budget deficit, helped lift the Canadian currency again. The government also mentioned it aims to balance the budget by 2014 without raising taxes. USDCAD had reached a high of 0.9850 after the US non-farm payroll data, but then fell to 0.9751 as the Loonie recovered on the good news from the Canadian government’s new mandate.
Gold surged to a two-day high almost close to the month-high reached on June 1st. After the disappointing U.S. jobs report weakened the greenback, spot gold jumped over $21 to $1,546.68 from $1,524.83 a troy ounce. Investors turn to gold as a safe haven during political and economic insecurity and inflationary pressure. It typically has an inverse relationship with the U.S. Dollar and moves in the opposite direction to the dollar. Gold last hit a record high of $1,575.78 on May 2. If uncertainty over the U.S. and overall global economic health is heightened, that high may be breached again soon.
EURUSD | USDJPY | GBPUSD | USDCHF | USDCAD | GOLD | |
OPEN
(12:00 GMT) |
1.4488 | 80.56 | 1.6306 | 0.8412 | 0.9786 | 1524.83 |
DAY’S HIGH | 1.4641 | 80.68 | 1.6437 | 0.8421 | 0.9850 | 1546.68 |
DAY’S LOW | 1.4450 | 80.04 | 1.6290 | 0.8334 | 0.9751 | 1524.83 |
CLOSE
(21:00 GMT) |
1.4622 | 80.23 | 1.6426 | 0.8350 | 0.9780 | 1541.13 |
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.