Daily Economic Roundup – November 23, 2009

What’s on the Economic Horizon

US: October Existing Home Sales at 5.71M?
Euro Zone PMIs Expected to Show Small Improvements
UK: Inflation Hearings to Set The Tone of Pound Trading

United States

Big Ben Bernanke must’ve been rejoicing last week as the market heeded his calls for a stronger USD. The USD managed to close higher against the major currencies, except for the JPY. But would it be able to hold on to its gains this week? More…

Euro zone

The euro fell in Friday’s trading as stocks markets reacted to comments made by European Central Board President Jean Claude Trichet. Coupled with continued dollar buying, this sent the EURUSD tumbling down to as low as 1.4800 and ultimately closing at 1.4862. Is the 1.5000 handle now a distant dream? More…

Japan

The risk aversion camp was victorious in the foreign exchange markets last Friday, which helped the yen edge up against most major currencies. More…

United Kingdom

The Cable took another nasty hit last Friday as risk aversion remained strong in the currency markets. The Cable, after hitting a high of 1.6676 during the Asian session, fell almost 200 pips and ended the week with its head just a few pips above the 1.6500 handle. More…

Canada

The Loonie continued to weaken against the dollar last Friday despite the lack of economic flows from the US and Canada. The USDCAD went as high as 1.0732 before closing at 1.0699. More…

Australia

The Aussie slipped again for a fourth day in a row against the dollar last Friday. The AUDUSD fell to as low as 0.9061 but closed at 0.9155. The pair, though, could rebound any time soon since it is already trading near its long term uptrend line. More…

New Zealand

The Kiwi sailed downstream on Friday, continuing its struggle from the previous day’s action. The strong current fuelled by USD buying sent the NZDUSD pair to 0.7245, a level it hadn’t hit in two weeks. More…

Switzerland

The USDCHF zoomed from the 1.0100 area all the way up to a high of 1.0224 last Friday as USD strength dominated in the markets. SNB Chairman Jean-Pierre Roth’s bullish outlook for the Swiss economy proved to be no match for last week’s USD rally. More…