FX At Week’s End: EUR/USD At 2-Yr. Low
EUR/USDThe euro briefly reversed gains after an index based on a survey of purchasing managers in the euro area manufacturing and services industry dropped in September. The dollar slid to a two year low versus the euro as weaker than forecast economic data and concern that U.S. growth was hurt by a government shutdown added to bets the Federal Reserve will delay slowing stimulus until next year. Euro had little changed.
EUR/USD” width=”623″ height=”467″ />GBP/USDU.K. inflation expectations for the year ahead rose to 3.2 percent this month from 2.5 percent in September, as Citigroup Inc. The Bank of England has a 2 percent inflation target. Sterling gained 2.8 percent in the past three months, the best performer among 10 developed nation currencies. A report will show the U.K. economy expanded 0.8 percent in the third quarter compared with 0.7 percent in the previous three months, according to the median of 40 analyst estimates. Sterling was little changed at $1.6160 after rising to $1.6250 yesterday, the highest since Oct. 1.
GBP/USD” width=”623″ height=”467″ />USD/JPYJapan’s currency was little changed at 97.35 per dollar after climbing to 97.20. The yen has gained versus the greenback five of the past six days, adding 0.4 percent over the past week. It last touched 100 on September 11. The yen has declined 11 percent this year, making it the worst performer out of 10 developed-nation currencies.
USD/JPY” width=”623″ height=”467″ />USD/CADThe Canadian dollar had the biggest two day slump in four months after the central bank dropped language about the need for future interest rate rises that had been in place for more than a year, as risks of a worsening economy increased. The currency reached a six week low against its U.S. counterpart after the Bank of Canada said inflation will remain less than its 2 percent target until the end of 2015, two quarters longer than forecast in July, with the risks of further weakness taking on “increasing importance.”
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