Here are this morning's opening interbank mid-market rates:
USD/CAD 1.0513 EUR/CAD 1.3373 USD/JPY 84.74
GBP/USD 1.5535 EUR/USD 1.2709 USD/CHF 1.0278
Commentary:
The Yen rose broadly on speculation that the Bank of Japan’s decision to increase credit-easing measures was not aggressive enough to ward off additional yen strength at today's emergency meeting. The Yen hit its highs of the day versus the USD and Euro after Bank of Japan Governor Masaaki Shirakawa said after meeting Prime Minister Naoto Kan that Kan had not made any requests on the central bank's monetary policy. Shirakawa also refused to comment on recent currency moves which some investors took as a green light to keep buying the Yen. Kan said the nation will spend 920 billion yen ($10.8 billion) on economic stimulus and the central bank added 10 trillion in liquidity injections. With London closed for a holiday, currency movements were limited in European trade. The Yen could rise further against the USD after Federal Reserve Chairman Ben S. Bernanke said last Friday at the Kansas City Fed’s annual monetary symposium held in Jackson Hole that the U.S. central bank “will do all that it can” to ensure a continuation of the economic recovery, thus moving more aggressively than the BOJ. The Federal Open Market Committee “is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly,” the Fed chairman said. This statement was even more important after the revised reading of U.S. Q2 GDP to 1.6%, less than previously estimated, according to revised figures from the Commerce Department released Aug. 27. Meanwhile, the CAD strengthened and hit its highest level in over a week on speculation the Bank of Canada will move ahead with an increase in interest rates when policy makers meet Sept. 8. The overnight swap market is now pricing in a 53% chance, up from 30% last week, for a 25 basis-point increase. Bank of Canada policy makers lifted interest rates by a 25 basis-points to 0.75% on July 20, the second increase in two months. Bernanke's comments on Friday would support a move to the risk trade thereby boosting the CAD.
USD/CAD 1.0513 EUR/CAD 1.3373 USD/JPY 84.74
GBP/USD 1.5535 EUR/USD 1.2709 USD/CHF 1.0278
Commentary:
The Yen rose broadly on speculation that the Bank of Japan’s decision to increase credit-easing measures was not aggressive enough to ward off additional yen strength at today's emergency meeting. The Yen hit its highs of the day versus the USD and Euro after Bank of Japan Governor Masaaki Shirakawa said after meeting Prime Minister Naoto Kan that Kan had not made any requests on the central bank's monetary policy. Shirakawa also refused to comment on recent currency moves which some investors took as a green light to keep buying the Yen. Kan said the nation will spend 920 billion yen ($10.8 billion) on economic stimulus and the central bank added 10 trillion in liquidity injections. With London closed for a holiday, currency movements were limited in European trade. The Yen could rise further against the USD after Federal Reserve Chairman Ben S. Bernanke said last Friday at the Kansas City Fed’s annual monetary symposium held in Jackson Hole that the U.S. central bank “will do all that it can” to ensure a continuation of the economic recovery, thus moving more aggressively than the BOJ. The Federal Open Market Committee “is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly,” the Fed chairman said. This statement was even more important after the revised reading of U.S. Q2 GDP to 1.6%, less than previously estimated, according to revised figures from the Commerce Department released Aug. 27. Meanwhile, the CAD strengthened and hit its highest level in over a week on speculation the Bank of Canada will move ahead with an increase in interest rates when policy makers meet Sept. 8. The overnight swap market is now pricing in a 53% chance, up from 30% last week, for a 25 basis-point increase. Bank of Canada policy makers lifted interest rates by a 25 basis-points to 0.75% on July 20, the second increase in two months. Bernanke's comments on Friday would support a move to the risk trade thereby boosting the CAD.
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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