The GBP had a bad day of trading with the GBPUSD touching a low of 1.9616 and a high of 1.9688 before closing the day at 1.9680 in the New York session. Looking ahead, Retail Prices are just out and have come in better than expected month on month at -0.2% and exactly as per forecast year on year at 4.2%.
Euro (EURO) – Yesterday saw the release of a better then expected German IFO business climate index coming in at 103.5 (102.1 expected). This boosted the Euro with the EURUSD trading at a low of 1.5634 and a high of 1.5789 before closing the day at 1.5785 in the New York session.
Dollar (USD) – The FOMC released its minutes from the April 29-30 meeting and these pointed to weakening growth and higher unemployment in the US economy for 2008. Several policy makers considered it unlikely that there would be any further rate cuts in the immediate future. The U.S share markets and USD reacted negatively to the downgraded outlook. Later today, Jobless Claims are forecast to come out at 375k.
Australian Dollar (AUD) – The AUD touched 20 year highs overnight on surging commodities and as a result of the fallout from hawkish RBA minutes. The AUDUSD traded with a low of 0.9558 and a high of 0.9653 before closing the day at 0.9629.