Daily Economic Roundup for July 9, 2009

United States

Risk aversion is back! The dollar got boosted yesterday as risk sentiment shifted towards safety. This boded well for the US dollar, as it gained against all majors… well almost all. The USD fell dramatically against the yen, as investors chose to move their investments to the yen. The USDJPY pair fell by over 200 pips and reached its lowest level since last February! Interesting – could the dollar be relegated to secondary status in terms of “safety”? More…

Eurozone

Humpty dumpty sat on a wall, humpty dumpty had a great fall… And the EUR followed soon after. For the second day in a row, decreased risk tolerance continued to force investors to push the EUR lower against its lower yielding counterparts, the USD and the JPY. More…

Japan

The JPY surged “like crazy” as market participants started to digest the global economy’s previously ignored substandard fundamentals. The JPY has been taking the role of a “safe haven” alone to itself and away from the USD as market participants begin to worry regarding the swell in US debt. The JPY took away more than 100 pips from the USD in just about an hour during the mid-part of the US session as investors exhibited their concerns. More…

United Kingdom

The GBP once again found itself at the losing end against all the currency pairs excluding the NZD. Apparently, the NZD had a more terrible day than the GBP. The currency just sailed southwards versus safe-haven currencies such as the USD and JPY during the mid-part of the US trading session. More…

Canada

Holy ranges! The lack of hard-hitting economic data from US and Canada sent the USD/CAD bouncing up and down from support and resistance levels yesterday. Despite the surge in risk aversion and the slide in commodity prices, the CAD refused to slump as much as the other comdolls did. More…

Australia

G’day mate…? Well, not quite. The AUD was the worst performer among the commodity currencies yesterday as it shed as much as 100 pips against the USD. Consumer confidence is up and home loans exceeded expectations so why the downslide? More…

New Zealand

The NZD wasn’t spared by sellers as well. During the US session alone, the NZD tumbled down almost 100 pips versus the USD! With an empty economic calendar, it seems like the move was primarily caused by the dominating sentiment of aversion to risk. If this sentiment persists, we could see the NZD’s value to diminish further. More…

Switzerland

More range bound motion from the Swissy, as it dropped a couple of pips against the USD. The pair rose to 1.0897, just 20 pips above its opening price. More…