Regulatory investigations of alleged currency-market collusion are probably contributing to a slump in volatility in major foreign-exchange markets, according to Steven Barrow, Standard Bank Plc’s head of Group-of-10 research.
Coming up in the global economy this week are a meeting of euro-area finance ministers, disposable income in Russia, German business confidence and U.S. retail sales. In Australia, the head of the central bank will comment on the Australian dollar, while a decision on interest rates is due from the Chilean central bank.
Canada’s dollar rose along with equities and government bond yields as optimism that a meeting of Group of 20 finance ministers will progress toward resolving Europe’s debt crisis boosted demand for higher-yielding assets.
The Bank of England’s new governor Mark Carney may shift the central bank’s policy away from bond purchases, removing one of the supports of the gilt market, according to Pacific Investment Management Co.