Investors buy High yielding currencies
Investors are buying High yielding currencies
Foreign Exchange Overnight/Morning Ranges:
Currency rates EUR/USD 1.4262-1.4377
Currency rates GBP/USD 1.6194-1.6252
Currency rates GBP/EUR 1.1289-1.1367
Investors are buying High yielding currencies due to the increased optimism for global growth. This appealing look to investors comes when the Canadian dollar rose against the US dollar yesterday after data indicated the nation’s economy grew 0.2% from the previous month.
The Swiss franc also made significant gains against the euro and the US dollar, with the US dollar dropping by 1.9% against the Swiss franc. Call in now to protect yourself from adverse currency movements.
There were comments overnight from two U.S. Federal Reserve officials suggesting that should there be signs of an easing in inflation, then a round of Q/E 3 would not be ruled out.
However, the USD a little stronger after this morning’s session saw heavy selling of the Euro after the Euro Zone manufacturing PMI data dropped to 49.0, indicating that the sector activity has contracted for the first time since Q3 2009.
The unemployment data from the U.S. today and the non-farm payrolls tomorrow will be closely watched. Sterling a little firmer versus the Euro but holding below $ 1.6300 level as the UK manufacturing PMI data came in more or less as expected. AUZ$ rallies after a strong bounce in their retail sales.
EUR/USD currently 1.4280. Support 1.4200, resistance 1.4500.
GBP/USD currently 1.6209. Support 1.6000, resistance 1.6300.
GBP/EUR currently 1.1354. Support 1.1100, resistance 1.1350.
Oil $ 89.07 Gold $ 1820
Dow +0.46% FTSE -0.26% Nikkei +1.18%