Daily Economic Roundup for July 2, 2009

United States

The USD traded in a mixed tone across the boards as risk appetite popped its ugly face (or pretty face, depending on what your point of view is) on the foreign exchange market yesterday. It posted large losses versus the CHF, CAD and the EUR but remained pretty much range bound versus the other majors. Still, the bias among investors was to sell the currency. More…

Euro-zone

The EUR closed mixed in yesterday’s trading as it posted small losses against the CAD and the CHF and gained versus the trio of GBP, JPY, and the USD. The EUR surged vis-à-vis the USD and the JPY during the US session because of the worse-than-expected ADP non-farm employment change and pending home sales in the US. More…


United Kingdom

Despite stronger-than-expected manufacturing PMI, the GBP found some difficulty extending its gains against the USD. Manufacturing sector PMI rose from 45.4 to 47.0, its highest level since May 2008. The reading still lingers in the contractionary territory but is slowly crawling its way to expansionary levels above 50.0. More…

Japan

The USD/JPY hit the ceiling near the psychologically significant 97.00 level yesterday before sliding lower. Slight improvements in US employment data allowed the JPY to regain ground against the USD towards the end of the day. Prior to this, the highly-anticipated economic data from Japan, the Tankan manufacturing report, gave the JPY a slightly weaker tone as it indicated that economic prospects are not as bright. More…

Australia

The “Aussie” traded within a tight range of 76 pips yesterday, as it didn’t gain much despite the major US dollar selloff against other currencies. The pair traded within a tight range mostly between .8020 and .8100 through trading yesterday. More…

New Zealand

The NZD moved lower against the other currency big boys with the resurgence of some risk aversion in the capitals markets. Trading of the NZD, however, was still confined within its daily range. More…

Canada

Yesterday was a banking holiday in Canada, but that didn’t stop the CAD from rallying against the dollar. More…

Switzerland

CHF managed to gain massive ground versus the USD, rallying almost 200 pips yesterday! The prime suspect, as usual, was increased risk tolerance. The initial CHF buying frenzy has now abated though so unless risk appetite persists, the CHF would most likely trade side wards once again. More…