USD/CAD 1.0668 EUR/CAD 1.3512 USD/JPY 84.39
GBP/USD 1.5454 EUR/USD 1.2549 USD/CHF 1.0288
Commentary:
The Yen eased from a 15-year high against the USD and a nine-year peak versus the Euro on speculation that Tokyo was considering intervening to weaken its currency. Japanese Finance Minister Yoshihiko Noda repeated he would respond to Yen moves when necessary. His comments followed a Nikkei newspaper report that the finance ministry may consider unilateral Yen-selling intervention. With the Bank of Japan Governor Masaaki Shirakawa attending a Federal Reserve conference in Jackson Hole in the U.S. later this week, traders were weary of pushing the Yen higher in case he was planing to make a case for joint intervention. Of course with Shirakawa out of the country, other traders argue that the central bank is unlikely to hold an emergency policy meeting in his absence. In Europe, the Euro initially moved higher versus the USD after German business confidence edged even higher for July, boosting hopes that Europe’s largest economy will maintain a robust pace of growth in the coming months. The Munich-based Ifo institute said its business climate index rose to 106.7 from 106.2 in July, its highest since June 2007, defying expectations of a modest correction. However, the Euro gave back those gains as a widening in peripheral euro zone bond yield spreads highlighted concerns about weak countries in the bloc, following a downgrade of Ireland's credit rating the previous day. Of course the downgrade of Ireland’s credit rating, prompting investors to seek the Swiss currency as a haven pushing the CHF to a record against the Euro. In Canada, the CAD continued its longest string of losses since January 2009, as risk aversion continues to be the order of the day. The markets is expecting the Bank of Canada to take a pass on a September rate hike. Yields on overnight index swaps are holding around a 30% chance of a rate hike. The central bank has raised rates twice since the start of June and the next meeting is on September 8.
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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