Japanese yen – The yen resumed its uptick as pressure mounted on the euro-area. The Japanese unit jumped to ¥118.48 for a 1.5% session gain while it also rose by 0.3% against the dollar to ¥82.90. The news from Tokyo over the progress being made post-disaster is not only thin but also taking second-billing to events unfolding in Europe.
Aussie dollar – Stocks fell in Australia and the fear that Greece may need to restructure despite its leaders repeatedly denying that it would need to is taking the shine off the high-yield argument to start the week. The Aussie gave ground to the yen where it buys ¥87.25 and against the dollar where it buys $1.0520 U.S. cents.
Canadian dollar – The Canadian unit slid to $1.0350 U.S. cents at the outset of North American trading on Monday as growth fears spilled out of a worsening European situation. Again the local economic diary is relatively bare ahead of the long weekend and it appears that some position squaring could be in order with profit-taking perhaps extending any moves.
British pound – The British pound also eased against the greenback after an Ernst and Young Item Club report in which domestic growth was revised lower. The consultant shaved a half-point off its 2011 GDP projection to 1.8% hinting that there was little pressure on the Bank of England to restrict policy in light of the weight of fiscal adjustment put into place to restore order to the budget deficit. The pound eased to $1.6258 while advancing per euro to 87.82 pence.
Andrew Wilkinson is a Senior Market Analyst at Interactive Brokers LLC
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