USD/CAD 1.0554 EUR/CAD 1.3578 USD/JPY 84.39
GBP/USD 1.5417 EUR/USD 1.2846 USD/CHF 1.0166
Commentary:
The Euro rose against the USD ahead of this morning's U.S. non-farm payrolls and after a report that showed European retail sales gained for a third month in July. Retail sales in the 16-nation euro area advanced 0.1% from June, when they gained 0.2%. Meanwhile, the CHF gave up some of this week's gains against the Euro after inflation slowed in Switzerland as Swiss consumer prices increased 0.3% from a year earlier after rising 0.4% in July. In the U.K., the GBP was struggling near its lowest level in more than a month against the USD as a report showed U.K. services grew the least in 16 months, fueling concern Britain’s economic recovery will falter. Yesterday's European Central Ban policy meeting was very supportive of the Euro as growth outlook for the euro zone was revised up. The euro zone will probably expand between 1.4% and 1.8% this year. That’s up from a previous forecast range of between 0.7% and 1.3%. Speaking after the ECB left its benchmark rate unchanged at 1% yesterday, President Jean-Claude Trichet said a double-dip recession is “not in the cards” and risks to the inflation outlook are “on the upside.” In Asia, the Yen was down slightly after a little politicking by Ichiro Ozawa, a candidate in a party election this month that will decide Japan’s prime minister, said intervention to stem the Yen’s gains is a possibility. Ozawa, who heads the largest faction in the ruling Democratic Party of Japan, is challenging Prime Minister Naoto Kan at a party leadership contest on Sept. 14. The last time Japan intervened in the foreign-exchange market was 2004, when the Yen was at about 109. In the U.S., the jobs number is just out - U.S. employment fell for a third straight month in August, but the decline was far less than expected with non-farm payrolls falling 54,000. Private payrolls growth surprised on the upside, easing pressure on the Federal Reserve to boost growth with additional easing measures. In Canada, the CAD was down prior to the release of the U.S. jobs numbers but it has bounced up with a vengeance after the better than expect result. This news release could figure into Canada's interest rate expectations as a sputtering U.S. economy is a top concern, given the two countries' close trading relationship. Thus, the Bank of Canada's interest rates decision on Wednesday Sept. 8 looks to be the closest calls in some time.
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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