Market shows a great upside movement for the Euro and the GBP against the US dollar especially after yesterday's news on US data where both the durable goods and new home sales reading came out less than expected. Not to mention, yesterday's previous revision for the new home sales reading showed the lowest in eleven years. Such data only increased the analysts and investors expectations of a further cut in the benchmark interest rates decided upon by the FOMC meeting due next week resulting in the boost of majors we see today. The Euro and the GBP inclined to hit the 1.4355 and 2.0546 levels respectively while the Yen declined due to carry trades to settle around 114.54 levels.
The Euro inclined dramatically against the US dollar to hit a new record high of 1.4373 and recorded a low of 1.4323. The Euro Zone released the GFK Consumer Confidence for the month of November showing a drop to 4.9 worse than the expected and previous reading coming at 6.5 and 6.8 respectively yet the insignificance of the data is the reason why it showed no effect in the market. With lack of major Euro Zone Fundamentals, we can only blame yesterday's low US data readings for such great incline.
The GBP started today's session trading within narrow ranges then afterwards inclined greatly against the US dollar to record a high of 2.0564 and a low of 2.0507.
As for the Yen, carry trades dominates the currency as investors are selling the Yen and buying other rewarding currencies pushing the USD/JPY pair to the upside to record a high of 114.57 and a low of 114.02
Join the Discussion