EUR/USD
The euro slipped 0.4 percent, as The 1 billion-euro disbursement that’s on hold is part of an 8.3 billion-euro tranche approved by the euro area in principle in April. Of that, 6.3 billion euros have been paid out. A second 1 billion-euro disbursement is tied to further conditions. “Greece has made unusual progress in the past years,” German Finance Minister Wolfgang Schaeuble said today. “One has to show a bit of respect for the fact that Greece constantly has to take decisions that are difficult to push through domestically.” Greece’s main opposition party, which opposes the fiscal-tightening requirements for aid, came in first in European Parliament elections last month. This highlighted the risk that Samaras, clinging to a four-seat majority in the domestic legislature, will be forced to call national elections before his four-year term ends in 2016. The U.S. currency fell for a second day against the euro, the first back-to-back declines this month.
GBP/USD
The pound rose to the highest in 5 1/2 years against the dollar the pound strengthened 1.8 percent in the past month, The pound advanced 0.3 percent to while the dollar gained 0.3 percent. $1.7041 U.K. retail sales fell for the first time in four months in May. Sales including auto fuel declined 0.5 percent from April, the Office for National Statistics said today in London . Food sales slid 2.4 percent after surging the previous month during the Easter holiday. Sales at other retailers jumped 2.2 percent.
USD/JPY
The Bank of Japan holds the key to stabilizing the government bond market once the country’s largest pension fund starts selling its holdings, according to the nation’s bank lobby. Japan’s lenders, which loaded up on debt as loan demand stagnated in recent years, started to curb their JGB holdings in the wake of unprecedented monetary easing by the Bank of Japan. They held 130.9 trillion yen of the bonds in April, the least since February 2010, Bank of Japan data show.
USD/CAD
Canadian exporter sentiment rose to a four-year high, aided by a weaker currency and optimism about new orders from the U.S. and Europe, according to a survey by the government’s trade finance agency. Export Development Canada’s Trade Confidence Index rose to 77.2 from 75.4 in the last report on Dec. 2, according to a report from Ottawa today. The semi-annual index reached 78.8 in the first half of 2010. Canada sends three-quarters of exports to its southern neighbor, and the EDC survey showed one-third of respondents identified the U.S. as a “primary catalyst” for a stronger global economy, up from 3 percent six months earlier. Fifty-eight percent of those surveyed said the weaker currency had a positive effect on their sales. The Canadian dollar has fallen 1.2 percent.
