Europe

The Euro hovered near its 8-month low versus the U.S Dollar, pressured by disappointing German Ifo figures. The closely watched data showed a hefty fall in business confidence in the bloc’s largest economy with the business climate falling to 108 in July while current assessment declined to 112.9. The Euro edged down 0.1% to $1.3450, within reach of its recent low of $1.3443 hit yesterday. Against Japan’s currency, it traded little changed 137.0488 Yen after plummeting to 136.4109 Yen on Thursday, its lowest level since mid-November 2013.

Sterling appreciated for the first time in 3 days versus the 18-nation currency after a report showed that U.K’s economy expanded for a sixth quarter. The Office for National Statistics reported that GDP increased by 0.8% in the second quarter. The Pound was faintly higher at 1.2625 Euro. It initially rose as much as 0.1% before standing at 172.9776 Yen, almost unchanged from late U.S hours. Against the U.S currency, it fell 0.1% to $1.6970 after reaching $1.6968, a level unseen since June 17. The Pound was heading for its longest run of weekly declines since March and has dropped 0.6% this week.

North America

The U.S Dollar remained higher after a steep fall in the weekly jobless claims raising expectations for strong U.S. jobs data next week. The Greenback also gained support on a government report which economists forecast will show that orders for durable goods increased in June. The Commerce Department is expected to show that orders rebounded in June, rising 0.5% after dropping 0.9% the prior month. The Greenback inched up 0.1% to $1.3450, hovering near its 8-month high of $1.3443 hit yesterday. It was set for a 0.4% advance this week. Against it Japanese peer, it climbed 0.1% to 101.9359 Yen, its strongest level since July 07.

Around the world

The Yen showed little reaction to the release of the Japanese core consumer inflation which eased in June. The Statistic Bureau in Tokyo reported that the core consumer price index, which does not include prices for fresh foods, rose 3.3% in June, down from the 3.4% in May. The figures came in line with forecasts and failed to stir expectations for further easing by the BOJ. The currency was down 0.1% to 101.9359 per Dollar, the weakest level in more than 2 weeks. It was little moved at 137.0488 per Euro after touching an 8-month high of 136.4109.

Meanwhile, Australia’s Dollar continued on its downward trend ahead of U.S data. The so-called Aussie rallied on Thursday after upbeat Chinese manufacturing data but then fell later in the day following US unemployment benefit claims which came in at an eight-year low. It traded little changed at $0.9413. Against the common currency, it was almost unchanged at 69.91 Euro cents, 0.6% from its 8-1/2 month high hit yesterday. The Aussie was little moved versus the U.S currency, last standing at 95.8276 Yen after peaking at a 2-week high of 96.1357 Yen on Wednesday.

New Zealand’s Dollar tumbled to multi-week lows as investors braced for the RBNZ intervention. The central bank raised the official cash rate for a fourth consecutive time and warned that the currency’s strength was “unjustified” and could have “a significant fall” while signalling a pause in his tightening cycle. Traders are wary that the RBNZ put the market on notice as the last time they used the word “unjustified” was in an OCR statement in June 2007, after which it sold the kiwi. The currency fell 0.2% to $0.8555, after touching $0.8549, the lowest level in more than 6 weeks. It has declined 1.5% since July 18. Against the shared currency, it skidded 0.1% to 63.60 Euro cents, lingering near the 6-week trough hit earlier today. The Kiwi traded 87.1721 Yen, down 0.1% from Thursday when it plunged to 86.9652 Yen, the least since June 05.

Interbank Rates

GBP/EUR    1.26193
GBP/USD    1.69694
GBP/JPY    172.958
EUR/USD    1.34471
EUR/JPY    137.058
USD/AUD    1.06320
USD/CAD    1.07654
USD/NZD    1.17055
USD/JPY    101.923