USD/CAD 1.0333 EUR/CAD 1.3936 USD/JPY 84.08
GBP/USD 1.5857 EUR/USD 1.3468 USD/CHF 0.9860
Commentary:
The Euro hit the day's high against the USD early on Tuesday on a media report saying a former adviser to China's central bank said a USD devaluation may be inevitable. The Euro was also supported by comments by ECB Executive Board member Juergen Stark, considered a hawk, that the ECB may not renew some of its support measures when they mature at year end. The Euro came off those earlier highs after increased speculation of a downgrade in Spain. Frankly, I can't believe that Spain still holds a AAA rating. More problematic would be another downgrade to Ireland's credit rating because it is trying to deal with Anglo-Irish's banking woes. Meanwhile, the GBP was best performer today after reports showed retail sales unexpectedly climbed in September and on a narrower UK current account deficit for Q2. The U.K.’s fastest growth in nine years in Q2 was fueled by the biggest jump in government spending since 2008 and a surge in construction. Also, reports the European Union's annual farm subsidy to the UK would be converted into GBP at the end of the month helped to spur the GBP higher. In Asia, the USD fell to its weakest point since September 15, when Japan first intervened official in the markets. But the Yen should continue to get some support on continued threat of intervention and possible new measures by the government of Japan in the form of more stimulus. In the U.S., a Wall Street Journal report suggested that the Fed would opt for a smaller round of QE of about $500 billion, which was a relief to the market lending a hand to an oversold USD. In Canada, the CAD was down on lower commodity prices and flat stock markets. The market's focus remains on QE, possible Japanese intervention, and European bank problems as the USD rallies off an extreme oversold position here.
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.
No comments:
Post a Comment