Here are this morning's opening interbank mid-market rates:
USD/CAD 1.0416 EUR/CAD 1.3374 JPY/CAD 0.01218
GBP/CAD 1.6276 CHF/CAD 0.9911 AUD/CAD 0.9373
Commentary:
The Euro turned lower on Friday, giving up modest gains as worries about peripheral economies returned to dog investors who were briefly encouraged by strong German growth data earlier in the session. Traders said stop-loss selling in the Euro accelerated after the single currency fell below $1.2820. The latest drop in the Euro came as the spread between Spanish and benchmark German 10-year government bonds widened to 172 basis points, the highest since July 19. The spread between 10-year Greek and German bonds went out to its widest since late June after uninspiring results in an Italian bond auction prompted investors to pare positions in the Euro on debt concerns. Earlier, the Euro had risen after data showed Germany's economy grew more than expected in the second quarter. German preliminary GDP rose 2.2% in the three months to June, much higher than forecasts for a 1.3% gain. Growth for the entire euro zone rose 1% in the second quarter, but some peripheral economies were struggling, highlighting the two-speed nature of the euro zone's recovery. But the boost for the Euro turned out to be short-lived with many using the bounce to sell. In Asia, the Yen sold off versus the USD on news Japan's prime minister and the central bank chief would meet next week to discuss the Yen. Japanese authorities heightened their rhetoric, and the Bank of Japan was seen checking rates on Thursday after the Yen climbed to 84.72 yen on Wednesday, its highest since July 1995. Market players say they do not expect actual intervention unless the USD makes a move towards its record low of 79.75 yen, or the drop becomes more volatile. In Canada, the CAD forged ahead against the USD as global risk appetite improved overnight on stellar German growth data, but concerns about weaker economies in the euro zone and worries over a downside surprise for U.S. inflation figures limited gains.
Disclaimer: Please note that any currency rates/prices contained in this document are indicative, and subject to change without notice. Prices quoted may vary substantially based upon the size of transaction and market volatility.
USD/CAD 1.0416 EUR/CAD 1.3374 JPY/CAD 0.01218
GBP/CAD 1.6276 CHF/CAD 0.9911 AUD/CAD 0.9373
Commentary:
The Euro turned lower on Friday, giving up modest gains as worries about peripheral economies returned to dog investors who were briefly encouraged by strong German growth data earlier in the session. Traders said stop-loss selling in the Euro accelerated after the single currency fell below $1.2820. The latest drop in the Euro came as the spread between Spanish and benchmark German 10-year government bonds widened to 172 basis points, the highest since July 19. The spread between 10-year Greek and German bonds went out to its widest since late June after uninspiring results in an Italian bond auction prompted investors to pare positions in the Euro on debt concerns. Earlier, the Euro had risen after data showed Germany's economy grew more than expected in the second quarter. German preliminary GDP rose 2.2% in the three months to June, much higher than forecasts for a 1.3% gain. Growth for the entire euro zone rose 1% in the second quarter, but some peripheral economies were struggling, highlighting the two-speed nature of the euro zone's recovery. But the boost for the Euro turned out to be short-lived with many using the bounce to sell. In Asia, the Yen sold off versus the USD on news Japan's prime minister and the central bank chief would meet next week to discuss the Yen. Japanese authorities heightened their rhetoric, and the Bank of Japan was seen checking rates on Thursday after the Yen climbed to 84.72 yen on Wednesday, its highest since July 1995. Market players say they do not expect actual intervention unless the USD makes a move towards its record low of 79.75 yen, or the drop becomes more volatile. In Canada, the CAD forged ahead against the USD as global risk appetite improved overnight on stellar German growth data, but concerns about weaker economies in the euro zone and worries over a downside surprise for U.S. inflation figures limited gains.
Disclaimer: Please note that any currency rates/prices contained in this document are indicative, and subject to change without notice. Prices quoted may vary substantially based upon the size of transaction and market volatility.
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