Here are this morning's opening interbank mid-market rates:
USD/CAD 1.0423 EUR/CAD 1.3414 JPY/CAD 0.01225
GBP/CAD 1.6347 CHF/CAD 1 .0067 AUD/CAD 0.9339
Commentary:
The Euro caught a bid in the overnight secession after China, whose $2.45 trillion in foreign-exchange reserves are the world’s largest, disclosed that it was bullish on Europe and Japan at the expense of the USD as Fed Chairman Ben Bernanke shifts course on monetary stimulus. The nation has been buying “quite a lot” of European bonds, said Yu Yongding, a former adviser to the People’s Bank of China who was part of a foreign-policy advisory committee that visited France, Spain and Germany from June 20 to July 2. Japan’s Ministry of Finance said Aug. 9 that China bought 1.73 trillion yen ($20.1 billion) more Japanese debt than it sold in the first half of 2010, the fastest pace of purchases in at least five years. Concern that the U.S. economy is faltering was underscored by Bernanke during the FOMC's Aug. 10 meeting where it was decided that the central bank would reinvest principal payments on its mortgage holdings into Treasury notes to prevent money from being drained out of the financial system, its first expansion of measures to spur growth in more than a year. In Asia, the Yen, which is up 7.9% gain against the USD this year, may surge further as concern grows that U.S. efforts to boost economic growth will fail. “What we are seeing is not appreciation of the Yen but weakness of the USD, reflecting concerns that the U.S. economy may falter,” Eisuke Sakakibara, formerly Japan’s top currency official, said yesterday on the Fuji television network. “There is a chance the Yen will reach an all-time high and stay at that level for the time being.” The Yen's gains came despite weaker-than-expected Japanese GDP numbers. Anemic economic growth and a rising currency are likely to pose a headache to Japanese policymakers in coming days. In Canada, the CAD sold off this morning as the disappointing GDP numbers in Japan encouraged flows into safe-haven currencies. With no domestic news out today, the CAD will take its cue from a couple of U.S. reports that may give some insight to the health of Canada's biggest trading partner.
USD/CAD 1.0423 EUR/CAD 1.3414 JPY/CAD 0.01225
GBP/CAD 1.6347 CHF/CAD 1 .0067 AUD/CAD 0.9339
Commentary:
The Euro caught a bid in the overnight secession after China, whose $2.45 trillion in foreign-exchange reserves are the world’s largest, disclosed that it was bullish on Europe and Japan at the expense of the USD as Fed Chairman Ben Bernanke shifts course on monetary stimulus. The nation has been buying “quite a lot” of European bonds, said Yu Yongding, a former adviser to the People’s Bank of China who was part of a foreign-policy advisory committee that visited France, Spain and Germany from June 20 to July 2. Japan’s Ministry of Finance said Aug. 9 that China bought 1.73 trillion yen ($20.1 billion) more Japanese debt than it sold in the first half of 2010, the fastest pace of purchases in at least five years. Concern that the U.S. economy is faltering was underscored by Bernanke during the FOMC's Aug. 10 meeting where it was decided that the central bank would reinvest principal payments on its mortgage holdings into Treasury notes to prevent money from being drained out of the financial system, its first expansion of measures to spur growth in more than a year. In Asia, the Yen, which is up 7.9% gain against the USD this year, may surge further as concern grows that U.S. efforts to boost economic growth will fail. “What we are seeing is not appreciation of the Yen but weakness of the USD, reflecting concerns that the U.S. economy may falter,” Eisuke Sakakibara, formerly Japan’s top currency official, said yesterday on the Fuji television network. “There is a chance the Yen will reach an all-time high and stay at that level for the time being.” The Yen's gains came despite weaker-than-expected Japanese GDP numbers. Anemic economic growth and a rising currency are likely to pose a headache to Japanese policymakers in coming days. In Canada, the CAD sold off this morning as the disappointing GDP numbers in Japan encouraged flows into safe-haven currencies. With no domestic news out today, the CAD will take its cue from a couple of U.S. reports that may give some insight to the health of Canada's biggest trading partner.
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