FX Daily Wrap Up

The Euro pushed higher against its counterparts today, moving to a high of 1.3024 against the US Dollar and soaring to 167.27 verses the Austrian Dollar, despite disappointing data. With Germany’s and the United Kingdom’s Industrial Production reports missing their forecasts, the Euro seemed to have disregarded any fundamental factors. In the UK, the I.P. recorded a reading of negative 0.1% versus the positive 0.2% that was expected. Large declines in oil and gas production were a primary reason for the low numbers, with an additional 3.7% drop in quarrying and mining alone. As mentioned in this morning’s report, the Yen remains buoyant with the upcoming G-7 meetings. Today the Yen gained on the Dollar and the Euro, pushing to a new three-week high. With US and Japanese officials downplaying the possibility of any substantive discussion of Yen weakness at the upcoming G-7 meeting, traders returned to the “carry trade,” steadily buying EUR/JPY and the USD/JYP from the start of the European session. As we head into the Asian session, the USD/JYP is trading at 120.68.
David Hilgeman, XPRESSTRADE Analyst