What’s on the Economic Horizon
Australia’s MI leading index slips by 0.1% in May
MPC meeting minutes on tap
U.S. existing home sales due today
U.S. Dollar (USD)
Is risk appetite back in the game? With the rally in U.S. equities and higher-yielding currencies, it sure looks like it! Strong U.S. housing data combined with the upbeat developments in the country’s deficit reduction plan even allowed Greenback to outpace its safe-haven rivals.
Euro (EUR)
Even though the eurozone printed a couple of downers (a.k.a. yesterday’s ZEW reports), the euro was able to post decent gains against its major counterparts, chalking up victories against the dollar, yen, and Swiss franc.
British Pound (GBP)
Risk was on like Donkey Kong yesterday, which explains why the pound performed well against its major counterparts yesterday. GBP/USD reached an intraday high of 1.6179 before settling at 1.6125, while GBP/JPY shot up.
Japanese Yen (JPY)
The Japanese yen weakened against most of its counterparts as risk appetite popped its head back in the markets. USD/JPY ended the day at 79.22 while GBP/JPY closed 80 pips up from its 126.95 open price. Does this mean that the BOJ won’t need to?
Canadian Dollar (CAD)
Uhuh! You know what it is! Loonie power, baby! The Canadian currency was on its A-game yesterday as the BOC made its rate statement. As a result, USD/CAD broke below support at the weekly open to post an 81-pip slide. What did the central bank say to get Loonie bulls all riled up?
Australian Dollar (AUD)
Not even dovish RBA remarks were enough to keep the Aussie from rallying yesterday, as AUD/USD jumped 123 pips up from its 1.0601 open price. AUD/JPY also had its share of gains as it came 3 pips close to the 85.00 handle. Let’s find out if the Aussie can.
New Zealand Dollar (NZD)
Can anybody say “fresh record highs?” Yesterday the Kiwi was almost as fresh as I am in my new leather pants when it tipped a new record high against the Greenback on a wave of risk appetite in markets. NZD/USD climbed all the way to .8573 before capping the day with a 120-pip gain.
Swiss Franc (CHF)
Not today either, my friends. The currency bulls had to wait another day to enjoy a franc rally when a surge of risk appetite in markets weighed on the low-yielding currencies. USD/CHF climbed by 69 pips to .8248.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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