The euro is falling closer to fresh 20-month-lows after yesterday’s news that the European Central Bank would slow and extend its stimulus spending (quantitative easing) in effort to prop up the Eurozone economy. Many investors are instead favoring the US dollar as they expect the Federal Reserve will raise interest rates at its meeting next Wednesday.
The pound is trading mostly flat even as the UK’s trade balance deficit narrowed significantly in October as the weaker pound caused exports to spike.
Stateside, the US dollar is climbing as investors anticipate an interest rate hike from the Federal Reserve next week. They’re also waiting on the Michigan consumer survey and October’s wholesale inventory results set to come out this morning.
To the East, the Australian dollar is also rising after last night’s strong consumer and producer inflation readings out of China (Australia’s largest trading partner). Meanwhile, the Japanese yen continues its multi-week slide and is trading at its February lows against a relentlessly rising US dollar.
EURUSD: The euro is down as investors continue digesting yesterday’s ECB stimulus announcement.
GBPUSD: The pound is trading mostly flat despite strong export growth in October.
AUDUSD: The Aussie dollar is up after last night’s strong inflation data from China.
USDCAD: The Canadian dollar is rising as oil prices rally.