US Dollar (USD) - The Dollar continued gaining against most major currencies as U.S stocks continued to decline and risk aversion remained the main theme. The Dollar fell versus the Yen as speculations about reserve diversification made the Yen the favored safe haven currency. President Obama indicated that a second stimulus plan is possible as economic conditions continue to worsen. NASDAQ and Dow Jones fell by -2.31% and -1.94% accordingly as the selloff continued. GOLD (XAU) remained almost unchanged at 924$ an ounce. Crude Oil fell by 1.12$ to 62.93$ a barrel as crude inventories keep rising and the economy is worsening. Today, MBA Mortgage Applications will be released, the previous was -18.9%. Consumer Credit is expected at -10.00B versus -15.70B prior.
Euro (EUR) - The Euro ended the trading session on another decline versus the Dollar after gaining earlier on better than expected economic data. German Factory Orders rose by 4.4% better than the 0.60% expected and 0.00% prior. The French Trade Balance was released at -2.7B better than -3.80B expected and prior. US stocks declined and investor's fear caused the Euro to plummet back down. Overall, EUR/USD traded with a low of 1.3902 and a high of 1.4049. EUR/JPY traded with a low of 131.83 and a high of 133.91. Today, The European GDP will be released expected to remain at -2.5% and German Industrial Orders are expected to rise by 0.6% versus -1.9% prior.
EUR/USD - Last: 1.3910
British Pound (GBP) - The Pound continued weakening versus the Dollar on speculations the BOE will expand its asset purchasing program to spur the economy. Manufacturing Production showed a decline of -0.5% versus 0.1% expected and 0.2% prior, Industrial Production showed a surprising decline of -0.6% from 0.2% expected causing more weakness in the Pound. Nationwide Consumer Confidence was released overnight showing a better than expected rise to58.00 from 55.00 expected and 53.00 prior but had no effect. NIESR GDP Estimate came out at -0.4% versus -1.3% previous. The British Chamber of Commerce said BOE should get government's approval to start another money printing program. Overall, GBP/USD traded with a low of 1.6116 and with a high of 1.6294. EUR/GBP traded with a low 0.8580 and a high of 0.8655. No economic data expected today as investors look forward to the Rate Statement on Thursday.
GBP/USD - Last: 1.6090
Japanese Yen (JPY) - The Yen continued gaining rising to a 5 week high against the Dollar and 6 week high versus the Euro as pessimism and risk aversion boost demand for the relative safety of the Yen. Overnight, Core Machinery Orders came out surprisingly lower at -3.0% versus a rise of 2.3% expected and -5.40% prior, Bank Lending came out at 2.4% versus 3.1% prior and the Current Account came out at 1.02T lower than 1.25T expected. Japanese M2 Money Stock came out at 2.5% versus 2.8% expected and 2.7% prior. Asian stocks declined following the week economic data which showed global economy will take time to recover, causing the Yen to strengthen even more. Overall, USD/JPY traded with a low of 94.70 and with a high of 95.45.
Canadian Dollar (CAD) - The Canadian Dollar fell versus the Dollar after Commodity Prices dropped for the 4th day in a row, Crude Oil price dropped below 63$ and stocks continued tumbling spurring investors to cut holdings of the commodity currency. The Canadian Ivey PMI showed business spending rose to 58.2 versus 50.40 expected and 48.4 prior. Building Permits showed higher construction demand as better than expected result of 14.8% versus 0.9% expected and -5.4% prior was released. The positive economic news caused the Canadian Dollar to advance during early session but crude prices and stocks decline caused it to lose ground again. Overall, USD/CAD traded with a low of 1.1542 and with a high of 1.1672. No economic data expected today.
USD/CAD - Last: 1.163