CAD - The loonie reached a year-to-date high of 1.0599 vs. USD, breaking the psychological 1.06 barrier last Thursday after opening above 1.09 (1.0921 high) on Monday's session opening. This was in virtual lock-step with crude oil, which traded between $68.10 - $72.96, respectively. Equity markets fueled Canada's currency as well, with the DJIA reaching its highest level since last October (9846.00), and flirting with another key psychological level of 10K. Prime Minister Stephen Harper said last week, Canada must end its stimulus spending and return to a budget surplus when the country's recession ends. Some analysts are calling for the loonie to reach parity with its US partner by September 2010.

MXN
 - The peso benefited, though to a lesser extent, from the same elevating conditions as the other commodity based currencies ranging between 13.52 - 13.14 vs. USD-its lowest level since late August. Mexico's peso rose as retail sales in the US, the buyer of 80% of Mexican exports, surged in August by the most in three years. Mexican lawmakers criticized President Felipe Calderon's tax and spending proposals for next year, saying they unfairly punish the poor while doing nothing to close business tax loopholes. Calderon needs the PRI's backing to win approval for his bill. Calderon's 2010 budget proposal seeks to shore up public finances as the deepest economic slump since the 1930s reduces tax collection and output at the state oil monopoly declines.

CNY
 - The yuan weakened vs. the dollar to 6.8289. The yuan fell after Chinese authorities reined in last week's dollar-selloff-fueled gains to send a message that the currency should remain stable in the near term.

Last Week's Currency Highs and Lows and Forecast

CurrencyHighs and Lows Last WeekForecast
EUR1.4527 - 1.47571.4688 - 1.4750
JPY91.45 - 90.2392.50 - 89.70
GBP1.6234 - 1.66481.6180 - 1.6410
CHF1.0415 - 1.02791.0470 - 1.0259
AUD0.8770 - 0.85540.8670 - 0.8540
CAD1.0921 - 1.05991.0850 - 1.0690
DKK5.1239 - 5.04395.0900 - 5.0560
NZD0.7157 - 0.69700.7170 - 0.6916
MXN13.5193 - 13.149313.3900 - 13.3380
SGD1.4267 - 1.40941.4310 - 1.4086
TWD32.677 - 32.33533.100 - 31.900
ZAR7.5354 - 7.30247.6200 - 7.3900
DateIndicatorsPreviousExpected
9/21Leading Indicators (August)+0.6%+0.8%
9/23FOMC Interest Rate Announcement+0.25%+0.25%
9/24G20 Summit Begins (to Friday 25th)  
 Initial Jobless Claims (w/e 19th September)545,000550,000
 Existing Home Sales (August)5.24m s.a.a.r / +7.2%5.35m
9/25Durable Goods (August)+5.1%+0.5%
 Michigan Sentiment (September Final)65.7 / 70.2 (p)70.2
 New Home Sales (August)0.433m s.a.a.r. / +9.6%0.44m