Daily Economic Roundup – August 14, 2009

United States

The greenback suffered another beating in yesterday’s action as it lost support versus all the other majors. Positive developments in the euro zone’s economy (Germany’s GDP grew by 0.3% in the 2nd quarter after falling by 3.5%) plus the weak showing in the US retail sales and unemployment claims figures contributed to the USD’s demise. More…

Euro zone

Hooray for France and Germany! Both nations have officially exited the recession as both reported 0.3% GDP growth for the second quarter. The entire euro zone was not as lucky when it recorded a 0.1% contraction for the same period. This better-than-expected reading indicated that the region came so close to climbing out of the recession but, well, better luck next time. More…

Japan

And the yen continues to rally. The yen gained against the dollar yesterday, as investors jumped to the yen when poor US retail sales data was released. The USDJPY pair closed trading at 95.37. The pair has dropped ever since the strong up move last Friday – will we see a correction, or will the trend continue today? More…

United Kingdom

Cable rose strongly yesterday throughout the European session, before giving back some of its gains midway through the US session. Still, the pair closed higher at 1.6578, marking the third consecutive day that the pound rose. More…

Australia

It seems that the wave of positive sentiment generated by the FOMC helped spur traders’ appetite for risk yesterday. And we all know that when risk appetite hits the market, it’s usually the AUD that benefits the most. It broke past through 0.8400 against the USD during Asia session and managed to keep its head well-above that price level all throughout the US session. More..

Canada

Optimism spurred by the upbeat FOMC statement sent the CAD rallying against the USD during the Asian session but failed to follow through during the US session as dismal figures from US data curbed risk-taking. The USDCAD’s price action clearly mirrored the effect of risk on the currency markets yesterday. More…

New Zealand

Surprise surprise! Retail sales in New Zealand surged by 0.1% in June while core retail sales posted a less-than-expected decline of 0.4%. The NZD took this as a go signal to race 30 pips past the 0.6800 mark. More…

Switzerland

The CHF ran past the USD in yesterday’s trading. The better-than-expected German and euro zone’s GDP result coupled with the dismal set of economic updates in the US have helped propel the CHF above water. More…

Pipnoculars: What’s on the Economic Horizon


Risk Appetite Spurs Demand for the AUD

EZ Deflation Fears Gone Away or Here To Stay?
Next Attractions: CPI, Industrial Production, UoM Consumer Sentiment

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