Here are this morning's opening interbank mid-market rates:
USD/CAD 1.0303 EUR/CAD 1.3547 USD/JPY 85.34
GBP/USD 1.5544 EUR/USD 1.3129 USD/CHF 1.0033
Commentary:
The Euro rose against the US and is within striking distance of its five-week high due to solid demand to peripheral European bond auction, while expectations that the Federal Reserve may debate more monetary easing kept investors away from the US. Irish, Greek and Spanish government debt auctions attracted robust demand, easing concerns about whether the euro zone's highly indebted countries can obtain the funding they need. While spreads between peripheral euro zone and German bond yields narrowed, the spread between the US and Germany has widened out in Germany’s favor, helping lift the Euro. Meanwhile, the GB fell to a two-month low against the Euro and a six-day low against the US as a report showed the U.K.’s budget deficit widened more than forecast in August, raising the prospect of deeper government spending cuts. Britain posted the largest budget deficit for any August since records began in 1993, opening the door to further quantitative easing by the Bank of England. In Asia, the Yen moved higher against the US but stayed within its recent trading range as fear of more intervention by Japanese authorities kept traders in line. In the US today, all eyes will be on the FOND enlacement at 2:15 EST. The market will focus on the statement. Few expect the Fed to apply another dose of quantitative easing, but the statement is expected to be dovish due to recent evidence of a weakening economy. In Canada, the CAD has clawed back some of its earlier loss after Canada's annual inflation rate in August slowed, suggesting the Bank of Canada may pause in its interest rate hiking campaign. Canada's annual inflation rate in August slowed to 1.7% from 1.8% in July as energy prices moderated and clothing prices fell. Bank of Canada Governor Mark Carney has increased interest rates three times since June, to 1% from 0.25%, and said Sept. 14 the country’s recovery will be “slightly more gradual” than expected earlier this year. The overnight index swaps market is only indicating a 40% chance of a rate hike at the Bank of Canada's policy-decision on October 19th.
USD/CAD 1.0303 EUR/CAD 1.3547 USD/JPY 85.34
GBP/USD 1.5544 EUR/USD 1.3129 USD/CHF 1.0033
Commentary:
The Euro rose against the US and is within striking distance of its five-week high due to solid demand to peripheral European bond auction, while expectations that the Federal Reserve may debate more monetary easing kept investors away from the US. Irish, Greek and Spanish government debt auctions attracted robust demand, easing concerns about whether the euro zone's highly indebted countries can obtain the funding they need. While spreads between peripheral euro zone and German bond yields narrowed, the spread between the US and Germany has widened out in Germany’s favor, helping lift the Euro. Meanwhile, the GB fell to a two-month low against the Euro and a six-day low against the US as a report showed the U.K.’s budget deficit widened more than forecast in August, raising the prospect of deeper government spending cuts. Britain posted the largest budget deficit for any August since records began in 1993, opening the door to further quantitative easing by the Bank of England. In Asia, the Yen moved higher against the US but stayed within its recent trading range as fear of more intervention by Japanese authorities kept traders in line. In the US today, all eyes will be on the FOND enlacement at 2:15 EST. The market will focus on the statement. Few expect the Fed to apply another dose of quantitative easing, but the statement is expected to be dovish due to recent evidence of a weakening economy. In Canada, the CAD has clawed back some of its earlier loss after Canada's annual inflation rate in August slowed, suggesting the Bank of Canada may pause in its interest rate hiking campaign. Canada's annual inflation rate in August slowed to 1.7% from 1.8% in July as energy prices moderated and clothing prices fell. Bank of Canada Governor Mark Carney has increased interest rates three times since June, to 1% from 0.25%, and said Sept. 14 the country’s recovery will be “slightly more gradual” than expected earlier this year. The overnight index swaps market is only indicating a 40% chance of a rate hike at the Bank of Canada's policy-decision on October 19th.
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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