The USD continued to regain lost ground, strengthening broadly against other major currencies as USD-short positions are reduced following Friday's July US employment report. There were no data reports released today in North America, so position adjustments look to have been responsible for most of the USD gains. The Nordic currencies (SEK, NOK and DKK), and to some extent the EUR, took a hit on news that the Baltic nation of Latvia had its long-term credit rating cut to below 'junk' status. The Nordic countries, especially Sweden, have the largest lending exposures to Latvia and the other Baltic nations. The SEK fell against the USD, dropping from around 7.18 to a low around 7.28, for a decline of nearly 1.5%. EUR/USD also weakened, falling from around 1.4200 to a low just above 1.4100, before recovering back to 1.4140 toward the close of NY trading.
Recent trading relationships returned to the fore, with gold losing about $9 down to $946/oz as the buck strengthened. US Stock markets were down most of the day, but battled back to lose only around 0.4%, generally pushing carry trades (JPY-crosses) lower. EUR/JPY fell from around 138.00 NY opening levels to a low just below 137.00, before recovering to about 137.50 in tandem with the afternoon rebound in US stocks. US Treasury yields fell,, with the 10-year note yield losing about 8 bp to 3.77%, which weighed on USD/JPY, pulling it down from highs around 97.75 to a low near 96.90.
Upcoming Economic Data Releases (Asia Session) prior expected
- 8/10/2009 22:45 NZ NZ Card Spending (MoM) JUL -1 - -
- 8/10/2009 23:01 UK BRC July Retail Sales Monitor 10-Aug
- 8/10/2009 23:01 UK RICS House Price Balance JUL -18.10% -10.00%
- 8/11/2009 0:50 CA Finance Minister Flaherty Holds Press Conference in China 11 Aug
- 8/11/2009 1:30 AU NAB Business Conditions JUL -2 - -
- 8/11/2009 1:30 AU NAB Business Confidence JUL 4 - -
- 8/11/2009 JN BOJ Target Rate 11-Aug 0.10% 0.10%
- 8/11/2009 5:00 JN Consumer Confidence JUL 38.1 - -
- 8/11/2009 5:00 JN Consumer Confidence Households JUL 37.6 - -
