Jun 13 2014

Yen strengthened With Pound Versus Euro as Policy Outlooks Diverge  

Rate Range Projection by Bank

 Next week 102.00- 103.00

Next 3 months 100.00 - 105.00

 

Sterling rose to the highest since November 2012 against the shared currency after Bank of England Governor Mark Carney said interest-rate increases may be sooner than expected. The dollar was little changed against a basket of major peers before the Federal Reserve meetsJune 17-18 to consider plans to reduce stimulus.

 

The yen rose the most in three months against the euro as the Bank of Japan refrained from expanding monetary stimulus a week after the European Central Bank cut interest rates. Japan’s currency reached a four-month high versus the 18-nation euro as the central bank maintained plans to increase the monetary base at a pace of 60 trillion yen ($588 billion) to 70 trillion yen per year, in line with estimates of all 33 economists in a Bloomberg News survey.

 

“Euro-yen is not far off making new lows for the year,” said Shahab Jalinoos, a senior currency strategist for UBS AG in Stamford, Connecticut. “The market came into 2014 expecting more from the BOJ over the course of the year and not necessarily factoring in more easing from the ECB. Now in practice, what we’ve seen is the opposite.”