Daily Economic Round Up – July 10, 2009

United States

Reversal or correction? For the first half of the week, we watched risk aversion exert its dominance in the currency market, causing investors to flock to the safe-haven USD. Yesterday, better-than-expected jobless claims report coaxed investors back to risk tolerance mode. More…

Eurozone

It was a bounce-back Thursday for the Euro, as it pared off losses it made this past week against the USD. The pair jumped up and closed at 1.4032, after it had opened trading at 1.3880. Risk appetite seemed to improve last night (or is just a correction?), possibly helped by news coming out from the UK (non-expansion of its bond purchase program) and the US (better than expected unemployment claims). More…

Japan

JPY trading was mixed yesterday as the high-yielders staged a nice rally across the boards. Versus the USD, the JPY remained particularly range bound and just bounced a 130-pip range. Against the EUR, the JPY loss was pronounced as it lost almost 300 pips from its Asian session open price. More…

United Kingdom

The GBP surged to new weekly highs yesterday as the Bank of England chose to refrain from changing interest rates and expanding its quantitative easing measures. It opened just a few pips shy of 1.6100 and rallied almost 300 pips towards the 1.6380 price region by the end of the US session. Still, the question that must be asked is whether the sharp rise was merely a bullish correction from the recent dollar strength or a true shift in sentiment. More…

Canada

The CAD was trading within its range throughout yesterday until the mid-part of the US session when it suddenly kneeled before the other big boys from Europe. It lost 251 pips against the GBP yesterday to close at 1.8997. It also lost 102 pips versus the EUR to close at 1.6227. The theme ‘Holy Ranges’ managed to hold true, however, for the USD/CAD and NZD/CAD pairs. More…

Australia

The AUD may have had a shot of Red Bull yesterday as it recovered some of its losses that it made the other day against the other majors. The AUD gained some boost pretty much the whole day as investors gradually switched back to higher yielding assets. More…

New Zealand

ZZZZZZZ…. oh sorry, is it Friday already? It’s been a slow week for New Zealand, which only had one economic report that came out. As expected, NZD trading was largely affected by risk sentiment. Yesterday we saw the USD drop, which caused the NZDUSD pair to close higher. Is there a shift in risk assessment? Or is it merely a retracement? More…

Switzerland

The USD/CHF found itself tumbling down the hill as US weekly jobless claims were better than expected. This set off a surge in risk tolerance, which caused investors to flee to riskier assets and dump the USD along the way. The USD/CHF pair is currently back on its feet and dusting itself off, but is it strong enough to climb back up? More…