USD/CAD 1.0466 EUR/CAD 1.3322 JPY/CAD 0.01232
GBP/CAD 1.6295 CHF/CAD 1 .0107 AUD/CAD 0.9402
Commentary:
The USD was able to retain the gains it made late last week when growing worries about the global economy prompted investors to park funds in the world's most liquid currency. The bond market is suggesting the U.S. economy could be headed for a double-dip recession, and with summer winding down and markets bracing for highly anticipated U.S. growth data on Friday, investors probably won't be eager to bet against it. Risk aversion has crept back into the market and investors are reluctant to take on new positions in very illiquid trading conditions. Meanwhile, the Euro remained on the defensive after European Central Bank Governing council member Axel Weber said the ECB should extend its loose monetary stance, stoking worries about the euro zone economy. This week investors will watch Germany's IFO report to gauge business confidence in the euro zone's largest country and continue to monitor peripheral bond yields. In Asia, the AUD dropped after neither of the major parties in Australia won an overall majority in Saturday's election to form a government, leaving the country facing its first hung parliament in 70 years. Neither Australian Prime Minister Julia Gillard nor opposition leader Tony Abbott gained an outright majority in the Aug. 21 vote, meaning one side must win negotiations with independent lawmakers to form a government. Elsewhere, the Yen was steady as the market continued to be cautious about possible intervention by Japanese authorities to rein in the Yen's strength. Investors were also keen to see if Bank of Japan Governor Masaaki Shirakawa and Prime Minister Naoto Kan hold a meeting at which markets were expecting Kan to pressure the central bank for action in the face of the Yen's strength. Jiji news agency said the government is considering postponing the meeting, which had been expected to take place on Monday, to avoid giving the impression that it is intervening in the BOJ's policy decisions. In Canada, the CAD was little changed due to a moderate increase in oil prices and slightly firmer equity markets overseas. Last week's soft inflation numbers for Canada gave ample reason for the Bank of Canada to forgo an interest rate hike at their upcoming September monetary meeting.
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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