Here are this morning's opening interbank mid-market rates:
USD/CAD 1.0668 EUR/CAD 1.3411 USD/JPY 84.62
GBP/USD 1.5527 EUR/USD 1.2691 USD/CHF 1.0265
Commentary:
Apparently, it is safe to go swimming again as the risk trade is back on spurring global equity markets higher thereby stalling rallies in safe-haven currencies such as the Yen and the CHF. Market sentiment is getting support by this weekend's U.S. Federal Reserve’s annual symposium in Jackson Hole, Wyoming, on hopes that policymakers might voice support for monetary stimulus measures to help sustain growth. The Yen was also weighed down by speculation Bank of Japan Governor Masaaki Shirakawa might comment on the Yen at that very meeting. Also, a Japanese ruling party panel discussed currency intervention and recommended that the government ask the Bank of Japan to take monetary policy a step further to counter a rising Yen, increasing pressure on the central bank to act before its regular meeting on September 6-7. The policy panel's recommendations are part of a proposed economic package that mostly extends or expands stimulus measures currently in place. The cabinet will discuss the proposal on Friday. The government plans to outline stimulus plans by the end of the month, the Asahi newspaper said. Meanwhile, the Euro firmed and moved higher as stock markets regained some of its losses after a sharp sell-off in the first half of the week caused by rising fears over the health of global economy. This morning's better than expected initial jobless claims helped the USD regain its earlier loss to the Yen. The market is on pines and needles awaiting tomorrow downward revision in U.S. second-quarter growth rate. Also, the market is waiting to see what Bernanke will say in Jackson Hole on Friday, where he is likely to signal his views about the U.S. economy, but analysts say he is unlikely to offer clues to the Fed's policy outlook. In Canada, the CAD clawed back from a seven-week low against the USD on Thursday after an overnight bounce in equity markets and commodity prices. Markets are pricing in a 30% chance that the Bank of Canada will raise rates at its Sept. 8 policy meeting. A rash of disappointing data in Canada and the U.S. in recent weeks has let the air out of rate hike expectations and also put the CAD under pressure.
USD/CAD 1.0668 EUR/CAD 1.3411 USD/JPY 84.62
GBP/USD 1.5527 EUR/USD 1.2691 USD/CHF 1.0265
Commentary:
Apparently, it is safe to go swimming again as the risk trade is back on spurring global equity markets higher thereby stalling rallies in safe-haven currencies such as the Yen and the CHF. Market sentiment is getting support by this weekend's U.S. Federal Reserve’s annual symposium in Jackson Hole, Wyoming, on hopes that policymakers might voice support for monetary stimulus measures to help sustain growth. The Yen was also weighed down by speculation Bank of Japan Governor Masaaki Shirakawa might comment on the Yen at that very meeting. Also, a Japanese ruling party panel discussed currency intervention and recommended that the government ask the Bank of Japan to take monetary policy a step further to counter a rising Yen, increasing pressure on the central bank to act before its regular meeting on September 6-7. The policy panel's recommendations are part of a proposed economic package that mostly extends or expands stimulus measures currently in place. The cabinet will discuss the proposal on Friday. The government plans to outline stimulus plans by the end of the month, the Asahi newspaper said. Meanwhile, the Euro firmed and moved higher as stock markets regained some of its losses after a sharp sell-off in the first half of the week caused by rising fears over the health of global economy. This morning's better than expected initial jobless claims helped the USD regain its earlier loss to the Yen. The market is on pines and needles awaiting tomorrow downward revision in U.S. second-quarter growth rate. Also, the market is waiting to see what Bernanke will say in Jackson Hole on Friday, where he is likely to signal his views about the U.S. economy, but analysts say he is unlikely to offer clues to the Fed's policy outlook. In Canada, the CAD clawed back from a seven-week low against the USD on Thursday after an overnight bounce in equity markets and commodity prices. Markets are pricing in a 30% chance that the Bank of Canada will raise rates at its Sept. 8 policy meeting. A rash of disappointing data in Canada and the U.S. in recent weeks has let the air out of rate hike expectations and also put the CAD under pressure.
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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