Major Currency Pairs Analysis: June 26, 2013

Europe’s top contributor of passengers to the cruise industry as record employment levels and generous vacation rules give consumers the cash and leisure time for sightseeing by sea. Growth in Germany this year will probably be at about the same level as last year,” when passenger numbers increased 11 percent, Michael Ungerer, president of the Cruise Lines International Association’s newly established branch in the country, said in a telephone interview on June 20, “Germany will be Europe’s biggest market Germany’s economic growth, as well as employment levels near an all-time high, contrast with recessions in southern Europe, where record joblessness in countries including Spain and Italy have almost halted the industry’s growth in the region, the Brussels-based CLIA Europe said in its 2012-2013 annual report. Germany offers a minimum 20 days vacation plus 10 paid holidays.
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GBP/USD
Bank of England policy makers said the growth outlook remained modest and further asset purchases were possible. Governor Mervyn King, who retires at the end of the week, told lawmakers that the U.K. economic recovery is too weak to be satisfactory. The pound fell versus the dollar. U.K. 30-year bonds declined for a fourth day as the Debt Management Office sold 5 billion pounds ($7.7 billion) of securities due in 2068 via banks, the longest-ever maturity for a conventional gilt. Thirty-year securities underperformed their shorter-maturity peers after the extra yield over 10-year bonds shrank to the least in 15 months. Two-year gilts rose for the first time in seven days.
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USD/JPY
The yen strengthened from near a two-week low against the dollar as speculation a cash crunch in China will curb the nation’s economic growth supported demand for the relative safety of Japan’s currency. The yen advanced for a third day versus the euro after a Chinese official said the Bank of China will closely monitor the money-market rate. The Dollar Index dropped for the first time in five days after two Federal Reserve presidents yesterday emphasized monetary policy will remain accommodative. Sweden’s krona rose from the weakest since November against the dollar as producer prices fell less in May than economists forecast. The yen rose 0.3 percent to 97.45 per dollar.
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USD/CAD
The Canadian dollar fell against most of its major peers after reports showed the U.S. economy is strengthening, fueling speculation the nation’s largest trading partner has room to slow monetary stimulus. Canadian dollar fell 0.1 percent to C$1.0510 per U.S. dollar; the currency erased an earlier advance versus its U.S. counterpart after U.S. factory orders for durable goods rose more than forecast and consumer confidence (CONCCONF) climbed. Confidence among U.S. consumers climbed in June to 81.4, the highest level in more than five years, exceeding all estimates in a Bloomberg survey and signaling spending will probably accelerate after cooling this quarter. The median forecast of 77 economists surveyed by Bloomberg called for a reading of 75.1.
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