EUR/USD
The euro advanced versus the dollar on signs of economic strength in the 17-nation region and concern Washington budget talks may lead to a federal shutdown. Strength in the euro is very supported by the German consumer confidence data,” Ravi Bharadwaj, a Boston-based senior market analyst at Western Union Business Solutions, a unit of Western Union Co said in a telephone interview. “Most market participants are also very aware of previous shutdowns in the U.S.EUR/USD" title="EUR/USD" src="https://d1-invdn-com.akamaized.net/content/pic66bd6ebc0abfdb48dad3124eebc17fc7.png" height="467" width="623">
GBP/USD
The pound strengthened toward an eight-month high against the dollar after a gauge of U.K. retail sales unexpectedly increased in September, adding to signs the U.K. economy is improving. Sterling rose versus all of its 16 major counterparts before a report tomorrow that analysts said will confirm the U.K. economy expanded last quarter. The pound has been the best performer in the past six months, appreciating 5.8 percent against the dollar. U.K. government bonds rose after Bank of England policy maker David Miles said it would be misguided to expect an early interest-rate increase.
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USD/JPY
The yen snapped a four-day gain versus the dollar amid speculation Japan’s government will study a corporate tax cut and advise public pension funds to raise allocations of risk assets. The yen dropped after Kyodo News reported, without citing anyone that Japan’s government plans to pledge to “promptly” start a study on cutting the effective corporate tax rate. The U.S. currency also strengthened before a report forecast to show the world’s largest economy expanded at a quicker pace than initially estimated in the second quarter.
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USD/CAD
Canada’s dollar touched a one-week low as the discount for crude oil sold by Canadian companies compared with market benchmarks reached its largest since February, limiting the economic boost from the country’s biggest export. The currency fell for a second day versus its U.S. peer as politicians in Washington continued a standoff over legislation to fund the government and avoid a shutdown. Americans are losing faith in the nation’s economic recovery, Consumer purchases account for about 70 percent of economic activity in the U.S., Canada’s largest trading partner.
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