Daily Economic Roundup – February 19, 2010

What’s on the Economic Horizon

Euro zone PMIs On Deck Later
US Inflation Figures Today
UK Retail Sales to Dip by 0.5% in Jan
Canadian Retail Sales Boosted by Holiday Season?

United States

Speculation that the Fed could hike rates earlier than expected spurred currency traders to buy up the dollar late in the US session yesterday. The dollar index, which pits the US dollar against a basket of currencies, is treading the 81.60 region, its highest level since June 2009. More…

Euro zone

It was a wild roller coaster ride for the euro yesterday. The euro got some boost when the US PPI and Philadelphia Fed index showed some better-than-expected results. It then gave its gains back mid through the US session. Still, it was able to edge the dollar by a measly 4 pips to end the day. More…

United Kingdom

Let me echo Jack the Pipper in exclaiming “Oh, that nasty British pound!” It was the worst performing currency yesterday as a combination of weak economic reports from the UK and a US discount rate hike pushed the GBPUSD below the 1.5600 handle. More…

Japan

The USDJPY raced towards the 92.00 mark during the US session as the greenback emerged as the more favorable safe-haven currency yesterday. In their monetary policy statement yesterday, the BOJ decided to keep rates unchanged at 0.1%. More…

Canada

The USDCAD was caught on the wrong side of the fence early today after the US Fed made a surprise discount rate hike. The USDCAD soared following the surprise, and is now trading around 1.0480. More…

Australia

If you are a Aussie bull, then you probably had a bad morning. With the surprise announcement by the Fed, the AUDUSD came tumbling down and is now sitting just above 0.8900 – a fall of about 100 pips!Talk about waking up on the wrong side of the bed! More…

New Zealand

The kiwi was able to book a modest gain over the greenback to conclude yesterday’s price action. The NZDUSD rose and closed at 0.7061 after falling to a low of 0.6986 from 0.7036. More…

Switzerland

The Swissy experienced a nasty fall late in the US session yesterday when the speculation that the Fed would raise rates earlier than expected popped up in the markets. The USDCHF just breached the last week’s high at 1.0829 early today and is currently consolidating just a couple of pips below 1.0900. More…