USD/CAD 1.0188 EUR/CAD 1.4204 USD/JPY 81.95
GBP/USD 1.5912 EUR/USD 1.3922 USD/CHF 0.9637
Commentary:
Ahead of this weekend's IMF and G20 meetings and a gathering of G7 finance minister all in Wasting, the U.S. decided to play politics and trotted out St. Louis Fed President James Bullard in front of the CNBC cameras to declare that the chance of a renewed U.S. recession has receded and there may not be a strong enough case for additional stimulus. “The risk of double-dip recession has probably receded some in the last six to eight weeks,” Bullard said. “The economy has slowed, but it hasn’t slowed so much that it’s an obvious case to do something. A very reasonable decision would be to say, ‘Maybe we should push it off a meeting or two and see how the data comes in." This was done to defuse this weekend's hot topic "currency devaluation" at all the Wasting meeting. Canadian Finance Minister Jim Flaherty, who chairs the G-7 gathering, said this week that “there are concerns about interventions in currency markets” and that he’s “sure” the issue will be discussed. Brazil’s Finance Minister Guido Mantega warned last month of a “currency war. Bullard's comments spurred the USD across the board. The USD gave up some of its earlier gains after Labor Department figures showed employers cut staffing by 95,000 workers after a revised 57,000 decrease in August. The unemployment rate unexpectedly held at 9.6%. The jobs report spurred the Yen higher as the USD dropped below 82 for the first time since 1995. Traders know that Japanese officials will not intervene in front of these key meetings. I expect trading today to stay within tight ranges because of these meetings. In Canada, the CAD initially fell after Statistic Canada reported a loss of 6,600 jobs in September, largely because a steep drop in part-time jobs outweighed gains in full-time positions. Market operators had expected a gain of 10,000 jobs. This news but to bed any possible rate hike by the Bank of Canada at its October 19th meeting. The CAD was able to claw back its losses as the job report was not a dire as the overall loss of jobs would suggest, especially since the unemployment rate edged down to 8% from 8.1% in August.
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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