US Dollar (USD) – The Dollar gained against most majors but the Yen. Treasury Secretary Timothy Geithner urged lawmakers to quickly pass legislation enacting President Obama 's overhaul of U.S. financial rules. NASDAQ and Dow Jones managed to recover, closing almost flat at 0.06% and 0.18%. Crude oil dropped by 4.4%, its lowest rate this month, closing at 60.14$ a barrel as the Dollar strengthens and crude oil inventories show a decline. Gold (XAU) managed to break one resistance after the other, falling by 2.1% and reaching its lowest rate in three months. Today, Initial Jobless Claims is expected at 610K vs. 614K previously.
Euro (EUR) – The Euro fell heavily against the Yen but managed to maintain its force against the Dollar. GDP shrank 2.5% from the fourth quarter showing the European economy contracted by a record in the first quarter as exports dropped and companies cut spending and jobs to weather the slump in demand. Today, German CPI is expected at 0.40% as before and the ECB Monthly Report will be released later today.
EUR/USD - Last: 1.3905
British Pound (GBP) –The Pound declined to a one-month low against the Dollar on speculation that the BOE will increase its asset-purchase program after its meeting today, increasing the supply of Britain's currency, thus reducing its demand. House prices unexpectedly fell in June to 0.7% adding to the bearish note of the Pound and adding to signs that the property market may be slow to recover. Today, investors will hold their breath for the interest rate decision which is expected to remain at its current 0.5% rate. Also today, Trade Balance in the UK is expected at -6.80B vs. -7.0B previously.
GBP/USD - Last: 1.6100
Japanese Yen (JPY) – The yen rose massively for a second day against all 16 of its most-traded counterparts, reaching a six-week high against the Euro and Dollar on speculation U.S. corporate earnings will drop and an unexpected decrease in Japanese machinery orders encouraged demand for a refuge. All in all, USD/JPY traded with a low of 91.79 and with a high of 94.89.
Australian dollar (AUD ) – The Australian Dollar continue to weaken against the dollar reaching its lowest rate for two months after Australian employment fell in June to -21.4K as the global recession reduced demand for exports such as iron ore and coal, prompting mining companies to fire workers. Overall, AUD/USD traded with a low of 0.7722 and with a high of 0.7898. No economic data expected today.
AUD/USD - Last: 0.7800