US Dollar (USD)
The Dollar continued on its losing streak but had some support after US retail sales report unexpectedly fell from 0.8% previously to -0.1% and Initial Jobless Claims rose to 558K instead of the 540K expected, adding to concern the recession is yet to be over spurring investors to seek refuge in the Dollar. The Stock Market rose for the second day in a row. NASDAQ and Dow Jones closed at 0.7% and 0.4% respectively, despite the disappointing data released earlier. Crude oil rose to 70.52$ a barrel as investors buy futures to hedge themselves from the upcoming inflation. Gold (XAU) also rose and closed at 955$ an ounce. Today, CPI expected at 0% vs. 0.7% previously and the Michigan Consumer Sentiment Index expected at 68.6 vs. 66 previously.
The Euro advanced versus the Dollar and recovered dramatically versus the Pound after a report showed Germany and France, 2 of the nation's biggest economies, grew by 0.3% and the Euro zone's economy shrank less than economists predicted in the second quarter. The information about growth in Germany and France GDP boosted markets but the weak report on retail sales in the US changed the mood. Overall, EUR/USD traded with a low of 1.4180 and with a high of 1.4326. Today, The Consumer Price Index CPI is expected unchanged at -0.6%.
EUR/USD - Last: 1.4270
British Pound (GBP)
The Pound rose against the Dollar after reports showed the German and French economies unexpectedly grew in the second quarter, boosting optimism the worst of the recession is over in Europe. The pound pared gains against the Dollar after the U.S. Commerce Department said retail sales unexpectedly fell in July, dropping 0.1%. Overall, GBP/USD traded with a low of 1.6473 and with a high of 1.6665.
GBP/USD - Last: 1.6565
Japanese Yen (JPY)
The Yen gained versus the Euro and the Dollar on speculation Japanese companies are bringing back earnings on overseas assets. USD/JPY plunged from 96.50 to 95.00. The pair started to fall during the European session and continue after the opening bell at Wall Street. Overall, USD/JPY traded with a low of 95.03 and with a high of 96.46. Today, no data expected.
Canadian dollar (CAD)
The Canadian currency touched the strongest level this week as crude oil and stocks rose amid signs the global recession is easing, increasing the appeal of currencies linked to growth. The Canadian Dollar gained for a second day as reports showed Europe's economy shrank less than economists predicted in the second quarter, and France and Germany unexpectedly grew. Overall, USD/CAD traded with a low of 1.079 and with a high of 1.0907.
USD/CAD - Last: 1.0870