The Forex Daily Digest – June 26, 2009
The dollar was mixed against major currencies as the initial jobless claims increased unexpectedly, while the Fed made the first move toward removing many of the emergency lending programs it started last year at the apex of the current global financial crisis. The final first quarter GDP came in a bit lower than anticipated – 5.5 percent versus 5.7 percent.
The third U.S. Treasury auction of the week helped improve the confidence that the U.S. government will be able to raise enough money to fund its economic recovery programs. As I mentioned earlier, the Labor Department reported that initial jobless claims unexpectedly increased last week, while the number of people continuing to receive unemployment assistance rose more than anticipated. The figures indicated that jobs remain limited even as the U.S. economy begins to show some signs of recovery.
The GBP fell against the USD during European trading, but made some forward progress in the U.S. trading session thanks to a return to risk. There was no British economic data, but there were signs of confusion in the relationship between the U.K. Chancellor of the Exchequer Alistair Darling and the Bank of England. BOE Governor Mervyn King said that he wasn’t consulted on the Treasury’s proposals for regulatory reform and expressed concern that the BOE’s powers were not as great as its responsibilities to maintain financial stability. He said, “You, in parliament, must be clear that the Bank of England can only publish reports and make speeches.” We’ll keep watching this situation to gauge its affect on currency trading.
The EUR rallied to test 1.4010 against the USD today, and while the currency ended the day up against most of the majors, there are longer-term downside risks that must be considered. The euro held on to its gains against the Swiss franc following intervention by the Swiss National Bank.
The CAD fell to the lowest level since the middle of last month as stocks fell, making it the worst performer against the U.S. dollar this month. The loonie is now down six percent since reaching an eight-month high on June 1st. Bank of Canada Governor Mark Carney has warned at least twice this month that a stronger currency threatens to choke off Canadian economic expansion.
Friday’s U.S. economic calendar includes Personal Income and Spending, and the Michigan Consumer Sentiment report, which is expected to stay the same as the last report – 69.0 percent. As we finish the first half of the year next week, look for the Case/Shiller Home Price Index, the Chicago PMI, the ADP Employment report, Construction Spending, Pending Home Sales, Auto and Truck Sales, Factory Orders and the Non-Farm Payrolls for June. It’s going to be a busy week.
As we approach a hectic week ahead I hope you enjoy your weekend. Make sure you set your clocks for early Monday morning so you can tune into to the JDfn Internet broadcasts with our trading professionals. JDfn is constantly watching the currency markets and passing the information on to you. Have a great couple of days off!
Happy Trading –
James Dicks
The third U.S. Treasury auction of the week helped improve the confidence that the U.S. government will be able to raise enough money to fund its economic recovery programs. As I mentioned earlier, the Labor Department reported that initial jobless claims unexpectedly increased last week, while the number of people continuing to receive unemployment assistance rose more than anticipated. The figures indicated that jobs remain limited even as the U.S. economy begins to show some signs of recovery.
The GBP fell against the USD during European trading, but made some forward progress in the U.S. trading session thanks to a return to risk. There was no British economic data, but there were signs of confusion in the relationship between the U.K. Chancellor of the Exchequer Alistair Darling and the Bank of England. BOE Governor Mervyn King said that he wasn’t consulted on the Treasury’s proposals for regulatory reform and expressed concern that the BOE’s powers were not as great as its responsibilities to maintain financial stability. He said, “You, in parliament, must be clear that the Bank of England can only publish reports and make speeches.” We’ll keep watching this situation to gauge its affect on currency trading.
The EUR rallied to test 1.4010 against the USD today, and while the currency ended the day up against most of the majors, there are longer-term downside risks that must be considered. The euro held on to its gains against the Swiss franc following intervention by the Swiss National Bank.
The CAD fell to the lowest level since the middle of last month as stocks fell, making it the worst performer against the U.S. dollar this month. The loonie is now down six percent since reaching an eight-month high on June 1st. Bank of Canada Governor Mark Carney has warned at least twice this month that a stronger currency threatens to choke off Canadian economic expansion.
Friday’s U.S. economic calendar includes Personal Income and Spending, and the Michigan Consumer Sentiment report, which is expected to stay the same as the last report – 69.0 percent. As we finish the first half of the year next week, look for the Case/Shiller Home Price Index, the Chicago PMI, the ADP Employment report, Construction Spending, Pending Home Sales, Auto and Truck Sales, Factory Orders and the Non-Farm Payrolls for June. It’s going to be a busy week.
As we approach a hectic week ahead I hope you enjoy your weekend. Make sure you set your clocks for early Monday morning so you can tune into to the JDfn Internet broadcasts with our trading professionals. JDfn is constantly watching the currency markets and passing the information on to you. Have a great couple of days off!
Happy Trading –
James Dicks
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