Dollar weakens on expectation of QE3

British pound – The pound’s a shade lower against both the euro at 87.40 pence and buys $1.6475 against the dollar on a day void of domestic data and a reprieve for global stocks. Set against recent gains for the Swiss franc in an increasingly risk averse environment, the pound has been buoyant against both the dollar and euro.

Aussie dollar – The Aussie rebounded from earlier weakness as global stock markets advanced with hopes running high for a fresh look at quantitative easing at Friday’s Jackson Hole symposium. The unit recently traded at $1.0469 against the dollar and ¥80.14 against the Japanese unit.

Canadian dollar – The response to early conviction over what Fed Chief Bernanke will do and say was to rally support for the Canadian unit on Monday. The unit rose to $1.0168 before equity indices pared an early sizable gain. The Canadian recently eased to $1.0137 U.S. cents.

Andrew Wilkinson

Senior Market Analyst

Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.

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About the Author
Andrew Wilkinson

Andrew is a seasoned trader and commentator of global financial markets. He worked for several London-based banks trading cash and derivatives before moving to the U.S. to attend graduate school. Andrew re-joins Interactive Brokers following a two-year stretch at a major Wall Street broker-dealer as their Chief Economic Strategist. His coverage of stocks, options, futures, forex and bonds regularly surfaces in global media, and over the last several years Andrew has made many TV appearances on Bloomberg, BBC, CNBC and BNN and Yahoo Finance.

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