EUR/USD
Pemex’s euro-denominated bond sales are part of a broader push in emerging markets to seek financing in Europe as the European Central Bank pursues policies to suppress borrowing costs while the U.S. Federal Reserve reduces its monthly bond buying that lured investors into developing countries’ assets. Brazil’s state-run oil producer Petroleo Brasileiro SA issued in January $5.1 billion of euro and pound-denominated debt, a record sale in Europe by a developing-nation company.while Greece is preparing a property portfolio valued at as much as 500 million euros ($688 million) to offer to investors by the end of this year, according to the head of the Hellenic Republic Asset Development Fund. The fund, which completed almost 5 billion euros of deals including 1.8 billion euros of real estate over the past 14 months, is tapping into renewed investor demand for Greek assets. The nation is emerging from a six-year economic crisis that almost forced it to leave the euro. Euro trade at 1.3850.
GBP/USD
The pound reached the strongest level in a month against the dollar and euro after a government report showed the U.K. trade deficit narrowed in February. “While data has been mixed recently, the glass is more than half full in the case of sterling,” said Peter Kinsella, a senior currency strategist at Commerz bank AG in London. “But from a trading point of view, a lot of good news is already priced in. It will take something large for the pound to appreciate further, Sterling has rallied 4.8 percent in the past six months, the best performer of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, amid signs the economic recovery is gaining momentum. The International Monetary Fund raised its growth forecasts for the U.K. yesterday, predicting it will have the fastest expansion among developed nations this yea. The pound gained 0.1 percent to $1.6762 .
USD/JPY
The dollar fell to the weakest level in versus a yen after several Federal Reserve policy makers said projections in minutes from its last meeting. The yen declined against most major currencies after its biggest rally yesterday versus the dollar since August, Asian stocks outside Japan rose to their highest level in five months. Japanese equities slid after the yen yesterday strengthened the most since August. The yen fell 0.2 percent to 101.96 per dollar after dropping 0.4 percent, the biggest decline since April 1. It gained 1.3 percent yesterday.
USD/CAD
Canadian dollar rose for a second day as minutes from the U.S. Federal Reserve’s last meeting eased concern about the timing of increases in the central bank’s benchmark. The Canadian dollar has fallen 4 percent against a basket of developed-nation currencies this year. Canadian governments, from the federal to the provincial, are seeking to increase access to China as a market for the nation’s natural resources, including its largest export, crude oil. The majority of Canada’s oil industry is in Alberta, where a lack of access to international markets has caused a price discount on its heavy crude oil that is costing producers as much as C$50 million ($45.9 million) a day in lost revenue, according to the Canadian Chamber of Commerce. Canadian dollar trade at 1.088.
