Daily Economic Roundup for July 8, 2009

United States

The currency big dog – the USD – flexed its muscles versus most major currencies yesterday. It looks like all those previous talks about “green shoots” and “things being less bad” have now turned into nothing but distant memories. Risk aversion is at high levels and if bad economic data continue to pop up… Well, further USD strength might be in the cards, at least in the short term! More…

Eurozone

The EUR advanced against its dance partners after a German factory orders report showed a gain of 4.4% in May. However, the report did not have enough muscle to keep the EUR looking good (+) throughout the day. It only closed on the green side versus the CAD and GBP while it tripped versus the rest. More…

Japan

Safe-haven currencies, such as the USD and JPY, gained the upper hand as the market shifted back to risk aversion mode. Despite the lack of economic reports from Japan yesterday, the USD/JPY sank to the 95.00 mark as the USD faces threats of diversification in the G8 summit. More…

United Kingdom

The GBP dropped like a rock yesterday as weak economic data dragged the GBP/USD closer to the 1.6000 mark. Manufacturing production recorded a 0.5% slump, against the expected 0.1% uptick. Industrial production was down by 0.6% even when economists expected a 0.2% increase. More…

Canada

It appeared that the Canadian dollar was going to continue its run against the USD, as price action hit 1.1550 before reversing as risk aversion prevailed and dollar rallied. The pair eventually closed much higher at 1.1662. More…

Australia

Wild, wild movement on the Australian front, as the AUD was all over the place yesterday. The pair basically remained steady throughout the Asian steady, even as the RBA released its interest rate decision. By the time the European session was underway, the pair was rising before dropping sharply midway through the US session to close much lower than the previous day! More…

New Zealand

The NZD lost its flavor against the other ‘candies’ as market participants switched on their ‘bitter mode’ during the US session. It erased its early gains and lost 75 pips against the greenback to close to 0.6294. More…

Switzerland

The CHF once again held its range versus the dollar once again yesterday! It prevented the USD from advancing past 1.0920 but still fell short to breaking 1.0800. More…