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Overall, the major pairs posted some very strong gains compared with the dollar last week, especially on Friday. In tonight’s Asian session, the major currencies seems to have retained some part of the strong uptrend, since some of the pairs have already tested the highs or lows set on Friday. Moreover, the cad and pound returned more than 9% last month, the best performance in the last few decades.
The Euro (Eur/Usd) euro broke another milestone last week, on Friday, decisively breaking above the 1.4000 benchmark level and touching the highest value since late December 2008. Over the last few weeks of trading, the euro led the major currencies higher against the dollar, as investors are looking for higher yields.
The Pound (Gbp/Usd) was one of the victim’s of the credit crisis, being for a long time the worst performer among the major pairs. However, as the credit crisis begins to dissipate, the pound has started to again to shine in the investor’s eyes. In May, helped by some strong rallies, the pound returned 9.4%, the most in the last 25 years.
The Aussie (Aud/Usd) also saw a strong upward trend in the last period, especially on Friday, when the pair rose as much as 170 pips. During tonight’s Asian session, the aussie managed to break above the high set on Friday, touching the highest level since September 2008.
Retail sales in Australia have increased by 0.3 percent in March which is lower than analysts’ forecasts of a 0.5 percent increase. In original terms, Australian turnover decreased by 0.8% in April 2009 compared with March 2009. There was no percentage change for Chains and other large retailers (which are completely enumerated), while the estimate for 'smaller' retailers decreased by 2.3%.
The Cad (Usd/Cad) enjoyed a very strong downtrend over the last few weeks, something that helped the Canadian dollar strengthen the most on record against the dollar in May. The Canadian dollar rose 9.3% last month, the most since 1950, helped by investors looking for higher yields, and a strong commodity market backing the pair’s moves.
The Swissy (Usd/Chf) struggled to break below the low set on Friday, during the Sunday open. Last week, the pair declined 180 pips, but most of the declines were really seen in the last day, on Friday, when the pair declined as much as 200 pips.
The Yen (Usd/Yen) fell around 160 pips on Friday, reversing the strong gain seen just one day ahead. The yen’s decline came as the pair failed to break an older resistance trend-line, which denotes the weakness of the uptrend. In tonight’s Asian session, the yen fell an additional 50 pips.
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