Daily Economic Roundup – August 18, 2009

United States

Another day of gains for the dollar, as risk aversion ran rampant for the 2nd day in a row. Stocks sold off across the world, with the Shanghai index dropping 5.8%! In turn, we saw the dollar hit a 3 week high against the euro, as the EURUSD pair dropped to as low as 1.4046 in intraday trading. More…

Euro zone

The euro got another serious beating from the dollar yesterday as poor risk tolerance was further aggravated by the strong sell-off in Chinese equities. Chinese equities took on another 5% loss after falling for already two weeks now. It seems that euro sellers have their eyes set at 1.4000. More…

United Kingdom

Another run of risk aversion in the capitals markets caused investors to drop the GBP like its hot. It was one of those days that you just want to forget as the GBP slipped against ALL the other players.More…

Japan

It was a grand slam for the Japanese Yen as it won yesterday’s trading against all the other major currencies. Despite a weaker-than-expected growth in the Japanese economy, the JPY was still able to move forward. We have risk aversion to thank for that.More…

Canada

The Loonie started the week on a weak note as it slid down against the Greenback, causing the USD/CAD to climb towards the 1.1100 mark. Commodity prices dipped yesterday on economic recovery doubts, suggesting that risk appetite is thawing out. More…

Australia

The Aussie got wiped out yesterday as risk aversion took its toll on commodity currencies. Both the AUD/USD and AUD/JPY had a tough time getting back on its feet until strong economic data, in the form of TIC purchases and Empire State index, were released from the US. More…

New Zealand

The NZD gave up more ground to the USD yesterday. Risk aversion is reign supreme and it seems that the investors’ appetite for risk is starting to wane. After making a new yearly high, is the NZD merely correcting itself from its recent rally versus the USD? Or is a new trend in the making? More…

Switzerland

The franc sold off against the dollar yesterday, primarily on USD strength across the board. It did gain however, against the euro, marking the 5th consecutive day that the EURCHF has dropped. If this continues, could we see more threats of currency intervention from the SNB? More..

Pipnoculars: What’s on the Economic Horizon

ZEW Economic Sentiment to Provide Support for the Falling EUR?
UK: Slowing CPI May Pull GBP Down
RBA Statement on Tap

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