EUR/USD
European Union lawmakers will probably have to amend the rules governing the European Central Bank as it embarks on the complex task of regulating banks, according to the Bundes bank. Starting next year the ECB is set to oversee banks as part of an effort to create a banking union that would break the link between lenders and states, which spawned the sovereign debt crisis. Critics say the move may create a conflict of interest at the central bank as policy makers are charged with guaranteeing the stability of Europe’s financial sector while fighting inflation. The euro little changed.EUR/USD" title="EUR/USD" src="https://d1-invdn-com.akamaized.net/content/picf50fbcf1e0a7f525edee20d3b4431c7a.png" height="467" width="623" />
GBP/USD
The pound rose to an eight-month high versus the dollar as Lawrence Summers withdrew from the race to lead the Federal Reserve, ending bets he would undo the central bank’s policies aimed at holding down borrowing costs. U.K. government bonds advanced with U.S. Treasuries, pushing 10-year gilt yields to the lowest level in more than a week. Summers, a former Treasury secretary, would tighten Fed policy more than Janet Yellen, who was his main rival to replace Chairman Ben S. Bernanke, The pound climbed 0.4 percent to $1.5935.GBP/USD" title="GBP/USD" src="https://d1-invdn-com.akamaized.net/content/picd831f466794e0328c23edaf23eb78479.png" height="467" width="623" />
USD/JPY
Japanese currency weakened against the dollar amid speculation the Federal Reserve may taper stimulus, increasing the appeal of the yen-denominated futures. The yen depreciated to 99.20per dollar after reaching the strongest level in two weeks yesterday. The Federal Open Market Committee will slow its monthly asset purchases to $75 billion from $85 billion at a two-day meeting that starts today.USD/JPY" title="USD/JPY" src="https://d1-invdn-com.akamaized.net/content/picc19d8bbdf721a6f6408073d6b5910ee8.png" height="467" width="623" />
USD/CAD
The Canadian dollar increased to its strongest level in a month amid speculation that the U.S. Federal Reserve won’t put an early end to its expansionary monetary policy, boosting riskier assets. The foreign-exchange market today has been shaped by the announcement that Larry Summers withdrew his candidacy. David Doyle, a Toronto-based strategist at Macquarie Capital Markets, said in a telephone interview. It has been broadly interpreted as signaling that U.S. monetary policy over the coming five years is likely to be less hawkish and more accommodative, which is causing Canadian dollar strength. Canada’s currency appreciated 0.3 percent to C$1.0320 per U.S. dollar.USD/CAD" title="USD/CAD" src="https://d1-invdn-com.akamaized.net/content/pic188f7d0c9d7336adeba38aa7491f0fbb.png" height="467" width="623" />