CAD is the strongest. EUR is the weakest.
The CAD is the strongest currency as North American traders enter for the day while the EUR remains pressured and is the weakest currency.
Overall, the high to low trading ranges for the day are below the 22 day averages (about a month worth of trading) for all of the major currency pairs and crosses. This suggests that volatility is down today, but it also often opens the door for an extension above or below the days trading range as the day progresses. So be on the lookout.
The CAD saw the USDCAD move to new lows in the last few minutes of trading. Yesterday Poloz said he would keep the inflation targets the same going forward. The GBP has also advanced in trading today after the Bank of England meeting minutes reaffirmed the view that inflation will rise later in the year. The EURs fall continued the trend for the week. Comments yesterday from ECB's Coeure that the ECB would increase bond buying in the near term to compensate for the slower summer, led to a trend like day. The jawboning seemed to have worked this time.
US mortgage applications for the current week came in weaker at -1.5% with the purchase index down -3.7 in the refinancing index of 0.3%. The 30 year mortgage rate rose to 4.04%. A year ago it was at 4.33% while a month ago it was at 3.83%.
At 2 PM ET, the Fed will release the minutes from the April 29 meeting. The statement at that time was thought to be more dovish. The EURUSD on that day rose into the decision, sold off after but continued the rally over the next few days. The pair was at 1.1149 just before the decision - not too far from the current level.
