Euro Destined to Record Weekly Gain
By the end of the trading day, the Euro could record the first weekly gain in nearly seven weeks as concerns over a brewing political crisis in Italy seems finally to be fading. The common currency is up about 0.4% this week after six consecutive weeks of losses, largely a result of clear signs of slowing growth within the Eurozone as well as concerns over Italian political instability. Those concerns were evident with the rising cost of Italian sovereign debt but attempts at forming a coalition government have helped push borrowing costs lower and improved sentiment for the Euro.
As reported at 10:28 am (JST) in Tokyo, the EUR/USD was trading at $1.17, down 0.01%; the pair had earlier hit a peak of $1.17065 while the low is at $1.16860. The EUR/GBP is trading at 0.8799 Pence, a gain of 0.05%; the pair has ranged from a session trough of 0.87950 Pence to a peak of 0.88027 Pence.
Trump Actions Start Trade War Brewing
In North America, a brewing trade war between the United States and Canada, Mexico and the EU has investors greatly concerned. The Trump administration announced today that Canadian aluminum and steel imports would no longer be exempt from tariffs. The first salvo across the border resulted in the Canadian Prime Minister, Justin Trudeau, announcing retaliatory tariffs. Officials from Mexico and the European Union have said that they intend to respond with retaliatory measures aimed at US exports to the EU. The USD/CAD was trading at C$1.29415, down 0.8878%; the pair has ranged from C$1.29366 to C$1.29565 in today's trading session.