Daily Economic Roundup – May 7, 2010

What’s on the Economic Horizon
Non-farm Payrolls to Come in Positive Again?
German Parliament to Vote on Greek Bailout
Swiss Retail Sales Report Due
Canadian Labor Data on Deck

United States

“Dark and difficult times lie ahead,” muttered Professor Dumbledore to Harry Potter yesterday as they watched the VIX surge once again. As fears of another financial meltdown intensified, investors sought safety in the US dollar. More…

Euro Zone

What the quiche happened yesterday!? A drop in the US equities led to a massive rally in the dollar and yen, leaving the poor euro to clean the dishes. The EURUSD dropped 300 pips in intraday trading before settling down at 1.2629. Meanwhile, the EURJPY was down almost 1000 pips before recuperating at 113.98. More…

United Kingdom

The user-error, together with the prospect of a hung parliament and worse-than-expected results on UK’s services PMI (55.3 actual vs. 57.1 forecast), provided the fuel for the pound bears to take the currency lower across the board. More…

Japan

“Fat Fingers” – the term analysts are using to describe yesterday’s huge yen rally. Rumor has it that the unprecedented $1 trillion drop in US equity values were caused by… get this, user-error. The news is that a large trading desk accidentally sold $16 billion worth of future contracts, instead of $16 million. More…

Canada

Risk aversion, this time stemming from user-error, pushed the Loonie almost 400 pips lower yesterday. From its Asian session opening price of 1.0297, the USDCAD reached as high as 1.0741 before settling at 1.0521 at the end of the US trading session. More…

Australia

Due to another run of risk aversion, the Aussie tumbled for the third day in a row, and this time, it was really bad. I mean really bad. I mean it was so bad that.. okay you get the point. The AUDUSD dipped as much as 300 pips, before barely making an 8-count to stand up at 0.8859. More…

New Zealand

After starting the day on the right foot, the Kiwi tripped and fell as the dollar rose across the board. After trading as high as 0.7277, the NZDUSD pair fell 250 pips in intraday trading, finally ending at 0.7108. Tough luck! More…

Switzerland

Did you see those swashbuckling moves by the Swissy yesterday? At first, it seemed like it would continue to get clobbered by the greenback for the rest of the day. But once the USDCHF hit a high of 1.1247, the Swissy took control and brought the pair down to a low of 1.1018. More…