During today’s Asian and European session the Euro recorded massive gains of over 200pips and hence making a full recovery from Monday’s 1.4157 low to return back to a 15month high. However during today’s American session the single currency failed to continue doing so as it recorded some losses against the American dollar. Nevertheless it is expected that this minor drop is only a correction before the Euro continues to rise as the trend as well as numerous major technical indicators appear to be showing an up direction. The currency pair is currently traded at 1.4508.
The sterling recorded losses over the Euro following after the publication of the BoE minutes showing policymaker caution regarding economic growth being outweighed by inflation worries and hence breaking the expectation of a near term interest rates rise. Nevertheless it recorded gains against the US Dollar as it continued to follow a steep upward movement reaching a high of 1.6425 and it currently appears to be recovering before reaching new highs. The currency pair is currently traded at 1.6405.
The Swiss Franc recorded major gains against the American greenback. Following the concerns about a potential debt restructuring in Greece as well as the possible downgrading of USA by S&P the Franc has recorded since yesterday a more than 125 pips with the USDCHF pair reaching a 0.8878 low. The pair is currently traded at 0.8820 with the pressure being at USD as lower levels are expected.
The Canadian Dollar failed to continue its gains over the American dollar as since today’s American sessions it appears to be bouncing back as it has recorded a near 45pips loss. During the session strong US housing data figures were announced that provided some temporary gains for the USD.
The precious metal continued to rise during the day and broke the 1500 level for the first time in its history. Inflation fears have pushed investors towards seeking commodities and hence Gold reached as high as USD1505.78 an ounce.