Euro, GBP, JPY, USD – Currency Major Update
Currency Major Update
13th October 2009, 0910 GMT
Euro
The Euro continued its bull run against all major currencies following strong corporate earnings and some improvement in employment figures. It is still in uptrend and may peak higher in the future as European Central banks shift massive reserves into the Euro. Retail sales are improving across the Euro zone which may further fuel the demand for the Euro. In today’s session, the EURUSD moved upward to touch the day’s high of 1.47810, currently hovering around that level.
GBP
The GBP is in downtrend following the worst recession of the century and a weak monetary policy. The bear run was further fuelled by the statements issued by BoE that it would key the key benchmark interest rates unchanged at 0.5%, the lowest in the past 4 decades inspite of the improvement in corporate earnings. Currently, the Cable is trading at 1.57375 with consensus suggesting that there’s still room left for downside.
JPY is still in uptrend with the Euro being the only exception as that pair appears to be in a consolidation phase. Currently, it is trading weak at 89.895 (0850 GMT) on the news that economic recovery is gaining momentum across the globe, and this may further reduce the demand for safe haven currencies. Further, the demand for JPY may weaken with near zero interest rates at 0.1%. It appears to be a selling opportunity for traders.
USD
The Greenback is continuing the rally it started last week with investors anticipating an early interest rate rise and tightening of the monetary policy. The U.S. Dollar Index is trading 1% up from last week. All major currencies have lost ground against the greenback, which is currently trading at 1.47770 versus the Euro.
