December 5, 2013
Interbank mid-market spot exchange rate indications for transaction amounts greater than US $1 million equivalent - Rates reflect North America a.m. Eastern Time opening levels.
|December 5, 2013|
|The Euro held firm vs the US Dollar after the European Central Bank kept interest rates on hold. Currency markets had expected no change in rates after the ECB surprised markets by cuting their rates to a record low of .25% last month. Traders, however, were on the lookout for the bank's inflation forecasts and any clues for future rate direction. The Japanese Yen was higher as global equity markets fell, with European shares losing ground for a fourth straight day. Demand for the Yen increases during times of market stress. The Norwegian crown fell to a 4 year low vs the Euro after Norway's central bank pushed back the first interest rate hike by a year. Currency markets were cautious ahead of tomorrow's key US non farm payrolls report, which is expected to show solid growth. Any upside surprise in the jobs report may spark another round of speculation that the US Federal Reserve might start scaling back its bond buying stimulus this month. The Fed is scheduled to meet on December 17-18th. US stock futures point to a slightly higher open. US 3rd Qtr GDP was revised up to 3.6% from the initial reading of 2.8%.|
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