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The dollar advanced against most of its major counterparts as a decline in U.S consumer sentiment revived demand for the greenback’s safety. The dollar appreciated 0.1 percent to the single currency in early afternoon trade yesterday to $1.2977. Consumer confidence declined in July to a five-month low, a sign the lack of jobs will limit the economy’s recovery. The Confidence Board’s confidence index fell to 50.4 from a revised 54.3 in June. The gauge was for the forecast to drop to 51 according to the median estimate. Sentiment may be slow to improve until companies start adding to payrolls at a faster rate, and the Federal Reserve projects unemployment will take time to decline. Today’s figures showed income expectations at their lowest point in more than a year, posing a risk for consumer spending that accounts for 70-percent of the economy.
The Canadian currency touched its highest level in more than a month as rising equities and stronger prices for commodities boosted the appeal of currencies tied to growth. Crude oil dropped 0.7 percent to $78.41 a barrel.
Today's Opening Rates (Mid-Rate) (as at 08:30 E.D.T.)
| EUR/USD | 1.3004 | USD/JPY | 87.54 | GBP/USD | 1.5559 | USD/CHF | 1.0570 |
| USD/CAD | 1.0271 | AUD/USD | .8945 | NZD/USD | .7304 | EUR/GBP | .8340 |
| USD/PLN | 3.0783 | USD/MXN | 12.652 | USD/DKK | 5.7345 | USD/SEK | 7.2871 |
Equity Indices (as at 08:30 E.D.T.)
| EUR/USD | 1.3004 | USD/JPY | 87.54 | GBP/USD | 1.5559 |
| USD/CHF | 1.0570 | USD/CAD | 1.0271 | AUD/USD | .8945 |
| NZD/USD | .7304 | EUR/GBP | .8340 | USD/PLN | 3.0783 |
| USD/MXN | 12.652 | USD/DKK | 5.7345 | USD/SEK | 7.2871 |
Indicative Opening Deposit Rates
| Time Period |
$ Deposit |
Euro Deposit |
| 1 Week |
0.30 |
0.29 |
| 2 Week |
0.31 |
0.29 |
| 3 Week |
0.32 |
0.29 |
| 1 Month |
0.32 |
0.36 |
| 2 Month |
0.40 |
0.29 |
| 3 Month |
0.48 |
0.61 |
| 6 Month |
0.70 |
0.93 |
| 9 Month |
0.88 |
1.08 |
| 12 Month |
1.08 |
1.22 |
Economic Indicators to Look Forward To This Week
| Date |
G7 |
Statistics |
Forecast |
Prev. |
Rank |
| FOCUS: E.U. STRESS TESTS |
E.U. regulators scrutinized 91 of the bloc’s banks to assess whether they have enough capital to withstand a recession and sovereign-debt crisis, with a Tier 1 capital ratio of 6 percent as a floor. Seven European Union banks failed the region’s stress tests with a combined capital shortfall of 3.5 billion euros ($4.5 billion), according to the Committee of European Banking Supervisors, which coordinated the initiative. Governments are seeking to reassure investors about the health of financial institution after the debt crisis pummelled the bonds of Greece, Spain and Portugal. The evaluations took into account potential losses only on government bonds the banks trade, rather than those they are holding to maturity, according to CEBS. That means the tests are set to ignore the majority of bank’ holdings of sovereign debt, investors said. |
Regulators tested portfolios of sovereign five-year bonds, assuming a loss of 23.1 percent on Greek debt, 12.3 percent on Spanish bonds, 14 percent on Portuguese bonds and 4.7 percent on German state debt, according to CEBS. The tests also assessed the impact of a four-step credit rating downgrade on securitized debt products, a 20 percent slump in European equities in both 2010 and 2011 and 50 other macroeconomic parameters, including a drop in the EU’s gross domestic product over two years. |
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