Aussie dollar – The Aussie remained above $1.1000 using the move to record-high territory as support for a second session. The local dollar had no domestic data to fuel a further rally but interest rate markets have recently shrugged off expectations of a reduction in the short-term lending rate set by the central bank on account of an increase in consumer prices during the second quarter. The Aussie nevertheless dipped to ¥85.73.
Canadian dollar – U.S. debt negotiations boosted the greenback midweek and pulling the U.S. unit back from the brink of its weakest level against the Canadian dollar since 2008. A resurgence of risk appetite on Thursday has helped buoy the so-called loonie lifting it to $1.0525 U.S. cents. The Canadian dollar continues to find support as optimists believe that behind the debt-clouded horizon stands the promise of a resumption of monetary tightening at the Bank of Canada. The dollar is firmer this morning ahead of a report due Friday likely to show a resumption of monthly growth during May following an April-time contraction.
British pound – The pound is unchanged despite a volatile session during which it jumped by more than a half-cent before falling by the same amount around its midweek close of $1.6328. The pound rose against the euro is a better European alternative and trades at 87.60 pence per euro. The pound was jolted by a slide in fortunes at retailers in June as reported by the CBI. Sales slumped to an index of negative five from a previous negative two as crimped consumers bought less groceries and home improvement items. The CBI noted a rapid drop in durable goods sold.
Andrew Wilkinson is a Senior Market Analyst at Interactive Brokers LLC
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