Daily Economic Round Up for July 7, 2009

United States

The USD was still a little tipsy as it lost its footing against most of the other majors yesterday. If its any consolation, it found itself at the positive end versus the GBP. More…

Eurozone
The EUR/USD set its sights on jumping back above the 1.4000 mark but the prevailing risk sentiment yesterday prevented it from doing so. Although the pair was able to make a rebound at the end of the day, weak economic data and recent criticism of the ECB’s actions restrained the EUR from making further headway. More…

Japan

Early yesterday, we saw a mad dash to safety as the yen rallied strongly during the Asian and European session. The USDJPY pair opened at 96.15 and dropped as low as 94.67, before finally closing at 95.34. It appears that risk aversion continued to be the dominant market theme, as recent news has caused traders to finally see that global economic recovery will slow. More…

United Kingdom
Volatility returned for the pound, as it got pounded yesterday during the European session… before recuperating much of its losses during the US session! The GBPUSD pair hit a new monthly low at 1.6100 before moving back up to close just below 1.6300! More…

Canada

Risk aversion set the stage for investors to push the CAD lower versus the USD early during the Asian trading session. The CAD’s defeat did not last long though, as CAD bulls managed to buy up the currency back to its opening price levels as the US trading session went by. The move was most likely caused by risk sentiment and technicals as Canada’s economic bag was completely empty. More…

Australia
The AUD traded in a U-shaped manner versus the USD in yesterday’s trading session. It initially traded weak during the Asian session but the currency was able to recover all of its losses as the US session went underway. More…

New Zealand

The NZD appeared unfazed by the risk-aversion-propelled USD rally. After sliding below the 0.6300 mark, the NZD/USD staged a slow but steady climb close to the 0.6400 level. An improvement in business confidence in New Zealand rendered the NZD as the best-performing currency yesterday. More…

Switzerland
Despite being put on a leash by the Swiss National Bank in the past weeks, the CHF still showed its might as it looked over the other “majors” yesterday. The only player which showed a little bit of resistance was the AUD. The AUD was quick on its feet and managed to close just above the opening price after being pulled down. More…