Daily Economic Roundup – July 13, 2009

United States

The USD knocked the heck out of the other heavyweight currencies except the JPY in Last Friday’s match. Market participants regained their confidence in the market last Thursday. The USD weakened as a result as they switch back to higher yielding assets like the AUD and the EUR. Their optimism, however, faltered once again which gave support to the USD. More…

Eurozone

The EUR/USD is currently tiptoeing towards the 1.4000 mark yet again. Risk aversion has been the dominating force for last week’s trading and this sentiment could be strong enough to carry on for another week. If this holds true, the EUR/USD could find itself being dragged farther and farther away from the 1.4000 level. More…

Japan

The yen made strong gains last week as people are becoming more anxious about the economic recovery. The USDJPY pair closed the week at 92.41, its lowest level since mid-February this year, while the EURJPY nearly hit 127.00 after opening the week at 134.29! Could we see the yen continue this strong run this week? More…

United Kingdom

It looks like Thursdays strong gains by the pound were merely a retracement, as the GBPUSD pair dropped close to 150 pips on Friday. The pair dropped as it seems that risk aversion reigns right now, which is causing traders to move away from higher yielding currencies like the pound. More…

Canada

The CAD remained steady last week even as risk tolerance continues to subside. Still, positive economic data provided a lot of support for the currency, as CAD buyers refused to give up the 1.1700 handle versus the USD! They bought the CAD every single time it attempted to breach the 1.1700 level. More…

Australia

Last Friday, we saw the AUD take quite a hit when it lost all of its gains from the day Thursday. Does this mean that Thursday’s strong rally was merely a retracement of the overall downward trend? It seems as if the prospect for global recovery is starting to abate, putting the AUD in a very delicate position. Concerns of a “double-bottom” recession are starting to surface… which isn’t really doing the AUD any good. More…

New Zealand

After a relatively slow week, is the NZD gearing up for a manic Monday? Retail sales and core retail sales have both been upbeat, posting 0.8% and 1.6% increases respectively. However, commodity prices have been sliding down, casting a bearish outlook on the NZD. More…

Switzerland

The CHF ended the week on the positive note against most of the other players. It punched its way against the EUR, GBP, and AUD. It also closed the week slightly up versus the USD. Its only blemish was vis-à-vis the JPY. More…

Pipnoculars: What’s up on the Economic Horizon