Major Currency Pairs: Euro Slides To 3-Month Low Against Dollar

The euro slid to a three-month low against the dollar after an official at the European Central Bank signaled it may remain accommodative for more than a year, further diverging from policy in the U.S. The euro stayed lower after the ECB, in an e-mailed statement, said Rasmussen didn’t intend to give guidance on rates for an exact period. Draghi made an unprecedented pledge last week after an ECB policy meeting to keep the bank’s monetary policy stance accommodative for as long as needed to spur economic growth. The benchmark interest rate is a record-low 0.5 percent. The ECB wanted to provide forward guidance in a more explicit way than it did in the past, Draghi told reporters.
EUR/USD" width="624" height="468">
GBP/USD
The pound fell to a three-year low against the dollar after U.K. manufacturing unexpectedly shrank in May, casting doubt on the strength of the recovery. The pound’s fallen after the data,” said Lee McDarby, head of dealing on the corporate and institutional treasury desk at Investec Bank Plc in London. “We’ve had some fairly robust data recently so for this to be negative is a little bit of a punch in the stomach for the pound. It’s not looking particularly great for sterling right now.
GBP/USD" width="624" height="468">
USD/JPY
Japan is getting closer to inflation and not deflation, Stefan Grosse, an economist at NordLB, the No. 1 forecaster, said in a July 3 phone interview from Hanover, Germany. “The key is that the U.S. will exit their quantitative easing. After the yen’s more than 20 percent depreciation since September, traders are seeing less scope for similar declines without more evidence that Japan will be able to boost its economy while eradicating deflation with stimulus measures that tend to debase one’s currency. For the strategists, the Asian nation is already generating evidence of success.
USD/JPY" width="624" height="468">
USD/CAD
The Canadian dollar rose for a second day amid optimism corporate profits will top forecasts and a report showed June housing starts exceeded analysts’ estimates. The Canadian dollar strengthened as stocks rose and crude oil, Canada’s biggest export, traded at almost its highest level in 14 months before data forecast to show U.S. crude supplies fell for a second week. Canada’s currency briefly erased gains versus the U.S. dollar and extended an advance against the 17-nation euro after report that a European Central Bank officials indicated more loans may be issued to ease the region’s financial crisis. People are looking for excuses to add some risk to their portfolios,” said Dean Popple well, head analyst in Toronto at the online currency-trading firm Oanda Corp. People are looking for excuses to add some risk to their portfolios,” said Dean Popple well, head analyst in Toronto at the online currency-trading firm Oanda Corp. “The Canadian dollar in the last 24 hours came up against some strong support levels in the last 24 hours came up against some strong support levels.
USD/CAD" width="624" height="468">