Europe

The Euro lingered near its 8-month low hit on Friday following the release of Germany’s Ifo business climate index which painted a gloomy picture of the economy. The shared currency was little moved at $1.3437, having plunged to $1.3426 last week, its weakest level since November 2013. Against its Japanese peer, it added 0.1% to 136.8708 Yen.

With the start of the week devoid of market moving domestic data, Sterling traded little changed. The Pound was faintly higher at $1.6988 after plummeting to $1.6967 on Friday, the lowest level since June 17. It was almost unchanged at 1.2637 Euro and inched up 0.1% to 173.0262 Yen ahead of Mortgage Approvals figure and Thursday’s GfK Consumer Confidence data which may inspire some market movement.

North America

The U.S Dollar traded little changed versus the Euro and the Yen as investors remain on the sidelines before reports economists forecast will show that growth in the service sector held near its fastest pace in 3 years, consumer confidence rose in July and economic growth rebounded last quarter. The Greenback hovered near its 8-month high versus the 18-nation currency of $1.3426 hit on Friday. It last stood at $1.3437, little moved from last week’s close. Against Japan’s currency, it was faintly higher at 101.8601 Yen after climbing to a 2-week high of 101.9234 Yen on Friday. There are 2 key events that may push the USD/JPY above the 102.00 mark. They are the Fed monetary policy decision and July Non-Farm Payrolls. The central bank will conclude its meeting on Wednesday where many believe is likely to culminate in the same dovish message from Chair Janet Yellen. On Friday, the Labour Department is expected to show that nonfarm payrolls rose 231,000 in July after they increased 288,000 in June. The jobless rate is expected to hold steady at 6.1%.

Around the world

The Yen remained lower ahead of a string of data tonight. Japanese employment, household spending and retail sales for the month of June are to be release before Tokyo’s market open tomorrow. The unemployment rate in the world’s third-largest economy is expected to a 3.5% reading, unchanged from May’s its 16-year low. The Yen skidded 0.1% to 136.8708 per Euro and was little changed at 101.8601 per Dollar.

Australia’s Dollar remained below the $0.94 level amid the lack of major economic data. The so-called Aussie retreated below the $0.94 after a rally on the back of strong inflation and Chinese manufacturing figures. Also with holidays across most of Asia on Monday, the currency would continue to trade within narrow ranges but this may this should change with the release of the U.S GDP and employment figures. It was slightly lower at $0.9391 after touching $0.9467 on Thursday unseen since July 01. Against the single currency, it was down 0.1% to 69.90 Euro cents, edging away from its 8-month high of 70.33 cents hit last week. It traded little changed at 95.6530 Yen.

New Zealand’s Dollar continued on its downward trend after Prime Minister John Key said that he concurred with the central bank that the Kiwi was too strong, a view expressed by Governor Graeme Wheeler when he raised the official cash rate to 3.5% last week while signalling a pause in the tightening cycle. The Kiwi plunged to a fresh 7-week trough of $0.8531, 0.2% below Friday’s close. It hovered near its 6-week low of 63.50 Euro cents and last stood at 63.53 cents, down almost 0.3%. It slid 0.2% to 86.9596 Yen, after earlier touching 86.8975 Yen, the least since June 04.

Interbank Rates

GBP/EUR    1.26417
GBP/USD    1.69848
GBP/JPY    172.999
EUR/USD    1.34355
EUR/JPY    136.847
USD/AUD    1.06380
USD/CAD    1.08071
USD/NZD    1.17000
USD/JPY    101.855