US Dollar (USD)
The Dollar weakened versus most of its counterparts as a better than expected Advance GDP showed the economy contracted by only -1.0% versus -1.4% forecast signaling an improvement in the economic conditions and raising risk appetite for higher yielding assets. The Chicago PMI came out better than expected at 43.4 versus 42.5 and 39.9 prior. NASDAQ and Dow Jones ended mixed with a -0.29% decline and 0.19% rise accordingly following the GDP results. Crude oil rose by 4.1% closing at 69.45$ a barrel as better economic conditions lift demand. Gold (XAU) rose by 2.06% closing at 953.4$ an ounce. Today, the ISM manufacturing PMI will be released and expected to rise from 44.8 prior to 46.4. Construction Spending are expected at -0.5% versus -0.9% prior and Total Vehicle Sales are expected to rise from 9.7M to 9.9M.
The Euro gained versus the Dollar and Yen and remained almost unchanged versus the Pound following the U.S GDP and better than expected Unemployment Rate flaming risk appetite. The European Unemployment rate came out at 9.4% better than the 9.7% forecast and 9.3% prior. The CPI Flash Estimate came out worse than expected at -0.6% versus -0.4% forecast and -0.1% prior. Overall EUR/USD traded with a low of 1.4063 and with a high of 1.4279. Today, The German Retail sales are expected to rise by 0.4% versus -1.3% prior. The Final Manufacturing PMI will be released and expected to remain at 46.0.
EUR/USD - Last: 1.426
British Pound (GBP)
The Pound rose versus the Dollar and Yen as risk appetite continues to grow following a better than expected Advance GDP in the U.S. Speculations rise that BOE will start slowing down its bond purchase program due to an improvement in the economic conditions. Overall, GBP/USD traded with a low of 1.6472 and with a high of 1.6731. Today, The Manufacturing PMI is expected to increase from 47.0 prior to 47.7.
GBP/USD - Last: 1.6740
Japanese Yen (JPY)
The Yen gained versus the Dollar but weakened versus the Pound and the Euro as risk appetite continues to be the main theme following good GDP results in the U.S. Housing Starts in Japan came out at -32.4% worse than -31.0% expected. Overall USD/JPY traded with a low of 94.5 and with a high of 95.85 and EUR/JPY traded with a low of 134.28 and a high of 135.56. Today, The Japanese Monetary Base is expected to show an increase to 6.8% from 6.4%.
USD/JPY - Last: 94.8
Canadian Dollar (CAD)
The Canadian Dollar continued to gain versus the Dollar as investors prefer higher yielding assets following the U.S Advance GDP which showed a lower contraction than forecast and therefore more stability in the markets. Canadian GDP came out worse than expected at -0.5% versus -0.4% forecast and -0.2% prior. Overall, USD/CAD traded with a low of 1.0763 and with a high of 1.0857. Today is a Bank Holiday in Canada due to Civic Holiday.
USD/CAD - Last: 1.077