Norway is new currency safe haven
Norway is now the new currency safe haven
Foreign Exchange Overnight/Morning Ranges:**
Currency Rates EUR/USD 1.4050-1.4089
Currency Rates GBP/USD 1.5912-1.5969
Currency Rates GBP/EUR 1.1308-1.1359
Norway’s crown is being considered as the new currency safe haven. The speculation comes as Investors are now expressing vast amounts of worry over where the new safe haven is and the speculation that Norway will be the next alternative, particularly against the euro.
Australia commodity currencies made the most significant gains which saw the Australian dollar rise 1.2% versus the US dollar as data showed that the Australian economy grew rapidly in four years.
The USD has held onto its weekly gains ahead of some key speeches later tonight from the Fed’s Bernanke and President Obama. To the relief of Chancellor Merkel, the German high court yesterday approved the bail-out of Euro Zone debt-riddled countries and ruling that they were not illegal, also Italy’s parliament passed the recent austerity bill.
The Euro has failed to rally versus the USD on this news. Markets await the press conference from the ECB after the rate announcement today (expected unchanged) and are expecting signals from Trichet that their stance over inflationary pressures had now eased. Sterling has underperformed this week ahead of today’s rate decision (also expected unchanged) as well as further calls for the introduction of another round of Q/E by the BoE.
The Bank of Canada kept interest rates unchanged as it expects business investment and consumer spending to help the economy grow in the second half of the year.
EUR/USD currently 1.4066. Support 1.3900, resistance 1.4200.
GBP/USD currently 1.5935. Support 1.5700, resistance 1.6000.
GBP/EUR currently 1.1328. Support 1.1100, resistance 1.1350.
Oil $ 89.44 Gold $ 1843
Dow +2.47% FTSE +0.06% Nikkei +0.34%