Daily Economic Roundup – November 29, 2010

What’s on the Economic Horizon

Net Lending to Individuals in U.K. to Rise to 800 million GBP
Canada’s Current Account Deficit Seen at 15.2 billion CAD

United States

Despite the absence of economic data, the dollar was still able to rally during Friday’s trading and post wins against all of its major counterparts. EUR/USD tapped its two-month low at 1.3200 before it parked at 1.3248 with a 107-pip win for the dollar, while USD/JPY closed at its 7-week high at 84.11. More…

Euro zone

While the U.S. retailers were aiming for black balance sheets last Friday, market playas were busy pushing the euro in the red. Risk aversion due to the European debt crisis and the tiff in Korea continued to drag the euro down, with EUR/USD falling by 107 pips at 1.3248. Meanwhile EUR/JPY dropped to an intraday low of 110.56 before leveling off with a 22-pip loss at 111.42. More…

United Kingdom

After the Ireland debacle, you’d expect debt issues to take a short break. But that’s just wishful thinking. Last Friday, Cable had another major decline when “new” debt troubles from euro zone popped up and triggered another round of risk aversion. From its Asian session opening price of 1.5760, GBP/USD fell more than 150 pips to close the U.S. trading session at 1.5592. More…

Japan

Risk aversion got the yen skyrocketing against its higher-yielding counterparts but not against the dollar, nuh-uh! USD/JPY opened at its intraday low of 83.60 and went on an uptrend to end the week 51 pips higher at 84.11. More…

Canada

Whoops! The Loonie slipped and gave up almost all of last week’s gains against the greenback last Friday when risk aversion clouded over markets and pushed high-yielding currencies like the comdolls lower. USD/CAD rose to an intraday high of 1.0247 before it closed 103 pips higher at 1.0200. More…

Australia

Just like Alicia Keys and Lady Gaga ditching Twitter, traders also dumped the Aussie in exchange for the dollar. It was all downhill for AUD/USD as soon as it opened Friday’s trading at .9813. At the end of the day, the pair was at its 7-week low at .9643. More…

New Zealand

Ouch! No thanks to another round of risk aversion, the Kiwi took a massive hit last Friday. NZD/USD closed the U.S. trading session at .7502, a decline of more than 100 pips from its opening price during the Asian session. More…

Switzerland

The franc’s price action last Friday was as mixed as a bowl of M&Ms when it gained on the euro but lost ground against the greenback. EUR/CHF dropped by 81 pips at 1.3284 while USD/CHF rose by 22 pips at 1.0028. More…