Daily Economic Roundup – May 5, 2010

What’s on the Economic Horizon

ADP Employment Change to Turn Positive for the First Time
UK Elections Around the Corner
New Zealand Employment Change Due

United States

“I wanna be a dollar billionaire soooo freaking bad,” sang the dollar bulls as they clocked in their second consecutive day of winning yesterday. The US dollar index, which tracks the performance of the dollar against a basket of other major currencies, is currently above the 84.00, marking its highest reading this year. More…

Euro Zone

The euro was speeding on the highway to hell yesterday as it dropped furiously against the greenback and the yen. The EURUSD plummeted to the 1.3000 handle while the EURJPY crashed by more than a couple hundred pips. More…

United Kingdom

Oh blimey! Thanks to renewed risk aversion, dollar strength reigned supreme, dragging the pound lower despite the release of some good data. The GBPUSD dropped almost 100 pips from its opening price. With elections just around the corner, what could be in store for us today? More…

Japan

I clicked on the radio yesterday, and I swear I heard B.O.B’s latest song, “Nothing on Yen,” at least six times – one time for each of the yen crosses! As risk aversion hit the markets yesterday, traders began to unwind their positions in risky assets, which of course benefitted the yen. More…

Canada

You know it’s risk aversion in play once you see the USDCAD rise by almost 150 pips from its opening price. With the USD rising across the board and oil prices falling, the USDCAD hit a 5 week high to close at 1.0249. More…

Australia

The RBA’s 0.25% interest rate hike wasn’t enough to keep the Aussie afloat since it fell down under when a huge wave of risk aversion hit the markets. At the end of the day, the AUDUSD was seen gasping for air under the 0.9100 level. More…

New Zealand

Jay Sean’s “Down” was on loop the Kiwi’s iPod all day yesterday as the NZDUSD fell down down down down down to the 0.7200 level. Risk aversion, spurred by never-ending fears of a debt contagion, caused stocks and commodities to tumble. More…

Switzerland

Just like the euro, the Swissy took a major hit yesterday as investors chose to trade it in for the safe-haven greenback. The USDCHF, which began the Asian trading session at 1.0858, rose more than 150 pips within the day to end the US session at 1.1018. More…