Here are this morning's opening interbank mid-market rates:
USD/CAD 1.0287 EUR/CAD 1.3460 USD/JPY 85.53
GBP/USD 1.5590 EUR/USD 1.3065 USD/CHF 1.0165
Commentary:
With no clear sign of intervention today by Japanese authorities, the Yen has remained in a tight range against the USD as traders have back off. Yesterday's intervention was Japan's first since 2004 and it successfully pushed the Yen back from its recent 15 year high against the USD. Prime Minister Naoto Kan reiterated on Thursday Japan would take decisive steps on yen rises, Jiji news agency reported, while Bank of Japan Governor Masaaki Shirakawa said he expected intervention would stabilize the forex market. In order to keep the pressure off the Yen, Kan may now ask the Bank of Japan to step up bond purchases, lower the benchmark interest rate to zero, or expand a bank-loan program. The Bank of Japan yesterday indicated it’s ready to support the government’s efforts, with Governor Masaaki Shirakawa releasing a statement minutes after the government confirmed the Yen sales. In Europe, the Euro extended its recent gains and reached a monthly high as a Spanish bond auction was well bid. Meanwhile, the CHF was hit hard after the Swiss National Bank kept interest rates unchanged and said it expected a marked slowdown in growth due to a strong rise in the currency. If the slowdown does occur than the SNB would restart its intervention program. Also, some market players were expecting a rate hike from the SNB and when it did not materialize, the CHF was sold off. In the UK, the GBP is up but underperforming the Euro on worse than expect UK retail sales. In Canada, the CAD is off its best level of the day and is back trading in a tight range against the USD near a six week high. With no economic news in Canada today or tomorrow, the CAD will take its cue from the Japanese intervention and U.S. economic reports.
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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