US Dollar (USD) – The Dollar continued to drop as stocks continue to rise after Goldman Sachs second Q result beat expectations, showing a 33% rise and Retails Sales rose by 0.6%, more than expected and the biggest gain since January, spurring risk appetite in the market. U.S. Treasury Secretary Geithner said in his speech yesterday that the global economy will probably suffer setbacks during its recovery. NASDAQ and Dow Jones rose by 0.36% and 0.33% respectively. Crude oil rose during Europe trading by 2% before falling again and closing at 59.37$ a barrel after OECD countries seen losing 30 million jobs by 2010. Gold (XAU) continued to rise for the fourth days in a row, closing at 925.25$ an ounce. Looking ahead, investors are waiting for the FOMC Meeting Minutes. Also today, CPI is expected at 0.60% vs. 0.10% previously and Industrial Production expected at -0.60% vs. -1.10% previously.
Euro (EUR) – The Euro fell against the Dollar after German investor confidence unexpectedly fell in July, suggesting the recovery in Europe's largest economy may take longer to materialize. The Euro rebounded later as stocks rallied and Goldman Sachs results came much better than expected. Overall, EUR/USD traded with a low of 1.3911 and with a high of 1.4014.Today, CPI is expected at -0.10% vs. -0.10% previously.
EUR/USD - Last: 1.4000
British Pound (GBP) –The Pound rose versus the Dollar trading with a low of 1.6220 and with a high of 1.6343. The U.K. inflation rate (CPI) dropped in June below the Bank of England's 2% target for the first time since September 2007 as the recession sapped price pressures in the economy. Consumer prices rose 1.8%. Today, Unemployment Rate is expected at 7.40% vs. 7.20% previously.
GBP/USD - Last: 1.6360
Japanese Yen (JPY) - Japan's currency declined yesterday versus the Dollar, Euro and the Pound as Goldman Sachs's earnings indicated the worst may be over for the financial industry, spurring investors to seek for riskier investments. Overall, USD/JPY traded with a low of 92.71 and with a high of 93.75.
Canadian dollar (CAD) – The Canadian Dollar advanced to the strongest level against the US Dollar in more than three weeks after breaking a support level a sell orders were gathered. USD/CAD traded with a low of 1.1320 and with a high of 1.1530. Today, Manufacturing Sales which measures the change in worth of sales made by manufacturing is expected at -0.80% vs. -0.10% previously.
USD/CAD - Last: 1.1315