Major Currency Pairs Analysis: October 22, 2013
ICM Brokers | Oct 22, 2013 04:51AM ET
EUR/USD
The euro is staking its claim as an alternative to the dollar on concern the world’s largest economy is destined to suffer fiscal upheavals every few months. Europe’s common currency, which as recently as July 2012 was in jeopardy of breaking up as the region’s sovereign-debt crisis heated up, is increasingly acting like a haven. It’s this year’s best-performer among a basket of 10 developed-market currencies and its correlation to the 20 most-traded emerging-market currencies has tumbled more than 40 percent to the lowest since 2003. The euro had a little changed.
GBP/USD
The pound fell against the dollar on speculation data will show U.S. employers added the most jobs since April. London house prices rose at an unsustainable rate in October as demand from overseas investors added pressure to a market with an already small supply of properties, according to Rightmove Plc. London is a world city where overseas investors see real estate as a safe asset at a time when safe assets are increasingly scarce. The pound dropped 0.1 percent to $1.6160.
USD/JPY
The yen fell as Bank of Japan Governor Haruhiko Kuroda said policy easing, which tends to debase a currency, will go on until inflation reaches 2 percent, even as data showed Japanese export growth slowed. The yen fell 0.5 percent to 98.20 per dollar after gaining 1.1 percent during the previous two days. The yen tumbled 11 percent this year, the worst performer of 10 developed-nation currencies.
USD/CAD
The Canadian dollar rose against the dollar before the nation’s largest trading partner, the U.S., releases data that may show hiring picked up last month. The currency snapped a three-day gain against its U.S. counterpart before the Canada makes a rate decision and releases its monetary policy report Oct. 23. The bank is forecast to reduce its growth projections after Senior Deputy Governor Tiff Macklem said earlier this month that the nation’s economy will expand more slowly than had been forecast.
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