Daily Economic Roundup – August 7, 2009

United States

Things are heating up in anticipation for today’s NFP report. The USD traded higher against most majors yesterday but risk aversion, the usual culprit, pleaded “not guilty” this time. A mixture of excitement and hesitation was evident in the markets as traders reduced their short USD positions in order to steer clear from NFP-induced volatility. More…

Euro zone

The EURUSD once again traded in a relatively tight range, although it did close much lower, closing the trading day at 1.4356. I found the relatively little movement somewhat surprising, as the European Central Bank did release their interest rate decision and latest statement. More…

Japan

The JPY’s tone was generally reserved all throughout yesterday as it just moved side wards with a slight bias to sell. Traders still remain cautious in letting go of the JPY as it is considered a safe-haven currency. More…

United Kingdom

The GBP got slaughtered across the boards yesterday as the Bank of England decided to expand its quantitative easing measures by another 50 million pounds. This puts the total cost of the program to 174 billion pounds. The damage on the GBP was huge. Minutes following the announcement, the GBP fell 150 pips against the USD. It didn’t end there though as it dropped down another 80 pips when the US session started. More…

Australia

The AUD lost its grip against the USD and the JPY after it recently posted new yearly highs. The resistance at AUD’s current levels (80.00 against the JPY and 0.8400 versus the USD) appears to be somewhat solid. The AUD/JPY and AUD/USD have attempted to break the said levels but were not able to do so. The pairs have been consolidating around the new highs for about 4 days now. More…

Canada

The CAD finally slid against the JPY and USD after rising for about a month now. Like they say, you can’t win them all. The CAD has been consolidating for a couple of days now as market participants remain cautious ahead of the NFP report in the US today. More…

New Zealand

Tight trading for the NZDUSD pair resumed yesterday, although the NZD did lose some gains from the previous day as the USD rallied slightly across the board. The pair closed trading at 0.6707. More…

Switzerland

The USD/CHF is still lounging above the 1.0600 area as traders are unsure of which direction to take ahead of today’s US NFP report. The pair inched a bit higher yesterday as Swiss consumer confidence showed signs of weakness. More…

Pipnoculars: What’s on the Economic Horizon

Fireworks Await US NFP Report
BoE Expands QE Program, GBP Poised for More Losses?