The Euro has been trading in a range against the U.S. Dollar since the open of European trading all the way to the U.S. session, remaining within the boundaries of highs of 1.4292 and lows of 1.4256 until the end of the day. U.S. markets were closed for Memorial Day holiday today therefore trading has been very thin with anything against the USD. Also in Europe, markets are cautious waiting for the decisions of the EU and IMF as they are currently working on a second bailout package for Greece, in an attempt to prevent the country from defaulting on its loans.
Sterling was trading flat against the U.S. Dollar today as U.K. markets were closed for the Spring bank holiday in addition to the U.S. market closure. From the European session to the U.S. session, GBPUSD has been trading between highs of 1.6487 and lows of 1.6449. EURGBP has mirrored the same pattern, recording highs of 0.8680 and low of 0.8656.
The Swiss Franc has been the safe choice of investors recently, hitting all time highs last Friday against both the Euro and the U.S. Dollar, driven by demand by international investors keen to reduce their exposure to risk. USDCHF spiked to a record low of 0.8462 on Friday and has since eased off but bound by resistance at 0.8530.
USDCAD has been trading in a range since May 23rd, between support levels of 0.9750 and resistance at 0.9815. There has been a tug-and-pull between the greenback and the Loonie as investors are cautious with both currencies. The U.S. Dollar has recently weakened due to a slew of disappointing economic data that suggest the U.S. economy hasn’t fully recovered. Te Canadian Dollar is in a wait-and-see mode until the Bank of Canada interest rate decision on Tuesday. Expectations are for the rates to remain unchanged at 1.0%. Canadian GDP data released today came out higher than previous quarter recording growth at 3.9 percent versus 3.3 percent for the first quarter on an annualized basis, so this probably will not merit a rate increase as the BoC would have preferred growth to increase by at least 4 percent which was forecasted. The news caused the Loonie to drop causing USDCAD to spike up 33 pips from 0.9752 to highs of 0.9785.
Spot gold prices gained momentum from the European session to climb throughout the US session up to new three week highs of $1,539.05 beating last Friday’s high. Debt concerns in Europe, particularly fears of Greek default are boosting demand for the safer investment in the precious metal. Meanwhile, a weaker U.S. Dollar also helps gold prices rise since they both have an inverse relationship