Daily Economic Round Up – August 3, 2009

United States

Dropped it like its hot! The USD plummeted against major currencies last week as the US GDP report showed that economic growth contracted less than expected for the second quarter of this year. Also, comments from the IMF saying that the USD is overvalued added to the downside pressure. More…

Euro zone

The euro made a last minute sprint to the finish line, finishing strongly against the dollar to end the week. The EURUSD pair had been trading lower over the week as the dollar gained on some runs of risk aversion during the week. However, the pair closed slightly higher to end the week, closing at 1.4252, as better than expected US GDP data helped boost risk appetite late on Friday trading session. More…

Japan

Despite poor results from Japan’s housing starts report, the JPY was bought up furiously last Friday. The prime cause was better than expected advanced GDP that came out from US. This pushed traders to diversify their portfolios away from the USD and seek another “safe-haven” currency, the JPY. The USDJPY pair dropped almost 100 pips in the two hour span following the US GDP release during the US session. More…

United Kingdom

Fuelled by risk appetite, the GBP flew more than 250 pips against the USD in last Friday’s US afternoon trading session. Risk appetite has been the dominating market sentiment for three straight weeks now, much to the benefit of the GBP. Will the prospect of global recovery continue to push the GBP to a new yearly high or will the GBP eventually land flat on its back? More…

Canada

The CAD showed its resilience in last Friday’s trading as it still managed to gain over the USD despite a very weak Canadian GDP report. More…

Australia

The AUD inched higher over the USD and JPY in last Friday’s trading. It got its boost from the improvements in the US and Chinese’s fundamentals. More…

New Zealand

The NZD ended the week on a solid rise, erasing losses made the previous two days and closing near its yearly high. The pair rose by over 100 pips in intraday trading, closing the week at .6621, its highest closing price in 10 months. More…

Switzerland

Will the SNB cast a currency intervention spell on the USD/CHF and EUR/CHF again? The USD/CHF is tiptoeing towards the 1.0600 area while the EUR/CHF is inching closer to the 1.5000 mark as though challenging the SNB to wield its intervention powers. More…

Pipnoculars: What’s on the economic horizon

USD: Non-farm payrolls report to hike up volatility?
GBP Breaks 1.6700: Will Buyers Follow Through?
EUR: ECB rate decision coming up

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