Coming Up Today (all times GMT)
- CAD Core CPI m/m (11:00)
Global equities markets were heavily down during Thursday's trading, pressuring so-called 'growth' or 'pro-risk' currencies. Essentially the 'risk aversion currencies' those which tend to gain when there is fear or pessimism in the market are the YEN, Swiss Franc and USD. Yesterday we saw these currencies gain against most of their counterparts including the EUR,GBP,AUD,CAD.
The EUR/USD see-sawed up and down all day. The pair rose over 1.2900 and fell below 1.2800, rose above 1.2900 again and once again fell below 1.2800 unable to maintain its conviction amongst a flood of negative US economic data. The pair is now hovering just above 1.2800.
The pair was highly volatile, trading in an 160 pip range between 1.5510 and 1.5670. Early in European trading the cable rose sharply from the bottom of this range to the top, on the announcent of very strong retail sales data, which exceeded market expectations. Poor US Data led to a consolidation in the pair as traders sought to reduce their risk profile.