Daily Economic Roundup – December 3, 2009

What’s on the Economic Horizon

ECB – No Rate Hike Expected
US: ISM Non-manufacturing PMI Could Climb to 51.6
UK Services Sector to Show Stronger Expansion in November

United States

Ho hum, price action was relatively quiet yesterday as the majors consolidated ahead of the ADP non-farm employment report’s release. A few hours after the release, the USD ended up slightly stronger than its major counterparts. How come? More…

Euro zone

Quiet day for the EUR pairs yesterday, as there wasn’t much movement until the US session. The EUR fell against USD, as the dollar gained slightly across the board. The EURUSD closed the day lower at 1.5047 after trading within a relatively tight range of around 80 pips. More…

Japan

Uh oh – yen in trouble! Despite the run of risk aversion that hit the markets during the US session, the yen fell against other majors on news of potential currency intervention. The USDJPY and EURJPY pairs rose to 87.39 and 131.50 respectively. More…

United Kingdom

Both the cable and the guppy were able to advance yesterday as UK’s construction PMI came in slightly better than expected. Also, BOE Chief Economist Spencer Dale expressed his concerns against further quantitative easing, leading most traders to think that other central bank officials would share the same view. More…

Canada

The Loonie surrendered some of its gains over the dollar in yesterday’s relatively quiet trading. The USDCAD closed at 1.0503 after falling to a low of 1.0432. The 1.0500 level appears to be keeping the pair afloat. Will it continue to hold the pair higher? More…

Australia

There was not any one big directional movement in the Aussie yesterday as it just ranged between 0.9250 and 0.9296. A breakout to the upside may be on the horizon especially if risk appetite persists. Will the Australia’s retail sales be that catalyst? More…

New Zealand

The kiwi dropped as risk aversion came back into play in yesterday’s trading session. The US dollar rallied across the board as US stocks fell, which hurt commodity dollars like the NZD. Still, the losses were minimal, with the NZDUSD pair dropping only 42 pips to close at 0.7224. More…

Switzerland

The Swissy was stuck in a really tight range yesterday as traders eagerly awaited the release of US economic data. Soon after, the USDCHF edged a bit higher as the ADP non-farm employment reading came in weaker than expected. More…