US Dollar (USD) – The Dollar gained against most currencies as CIT Group heads toward bankruptcy and economists are questioning whether the stimulus money will be sufficient adding to the investors concerns about the recession. U.S Building Permits were released better than expected at 0.56M versus 0.52M forecast, Housing Starts also beat expectation with 0.58M versus 0.53M expected. NASDAQ and Dow Jones rose mildly by 0.08% and 0.37% accordingly. Crude oil rose by 2.26% closing at 63.42$ a barrel. Gold (XAU) closed with only a 0.22% rise at 937.2$ an ounce. Today, The CB Leading index is expected to rise by only 0.5% versus 1.2% prior. Dennis Lockhart from the Federal Reserve is going to speak about the U.S economic outlook at the Rotary Club in Nashville today.
Euro (EUR) – The Euro dropped versus the Dollar after another failed attempt to cross the 1.4150 resistance level. The European Trade Balance came out at 0.8B worse than 1.0B expected and 0.7B prior and the CIT group bankrupt concerns led to less risk appetite causing the Euro to weaken. Overall EUR/USD traded with a low of 1.4063 and with a high of 1.4146. Today, The German PPI is expected to show an increase of 0.5% versus 0.0% prior.
EUR/USD - Last: 1.416
British Pound (GBP) –The Pound weakened versus the Dollar and the Yen after 5 consecutive days of gains as concerns CIT Group will go bankrupt raised demand for the safety of the Yen and the Dollar. Overall, GBP/USD traded with a low of 1.6331 and with a high of 1.6420. Today, The Prelim M4 Money Supply will be released and expected to rise by 0.4% versus 0.2% prior.
GBP/USD - Last: 1.64
Japanese Yen (JPY) - The Yen weakened versus the Dollar and the Euro as better than expected corporate earnings and U.S housing data were released leading to lower risk aversion and the preference of the Dollar over the Yen. Overall USD/JPY traded with a low of 93.48 and with a high of 94.36 and EUR/JPY traded with a low of 131.71 and a high of 133.48. Today, The Monetary Policy Meeting Minutes will be released.
Canadian Dollar (CAD) – The Canadian Dollar weakened mildly versus the U.S Dollar keeping above the 1.11 support level as The Canadian Leading Index was released worst than expected at -0.1% versus 0.2% forecast. The Canadian CPI and the Core CPI came out as expected at 0.3% and 0.00% respectively. Overall, USD/CAD traded with a low of 1.1128 and with a high of 1.1199. Today, The Wholesale Sales are expected to show a decline of -2.3% versus -0.6 prior, and the Foreign Securities Purchases are expected to rise by only 7.17B versus 9.05B prior.
USD/CAD - Last: 1.107