Forex Report
USD/JPY traded in the red before reversing course after President Bush’s speech and is currently higher by 8 pips to 115.93. JPY was higher vs. most major currencies in earlier trade, however sold off as equities rallied. EUR/JPY is up 22 pips to 159.09; GBP/JPY is up 70 pips to 233.79. Cable is up 49 pips to 2.0167 as interest rate futures in the UK indicate a full rate hike before year’s end. EUR/USD is up 13 pips to 1.3638 helped by a higher than expected Business Climate Indicator for August. The USD Index is marginally lower after thin trading and an early close for the Labor Day holiday.