Market Update
EUR/USD Performance Chart (08/19/08 - 12:15 p.m. EST)
| Daily % Chg | 0.05% | 3 months | -6.93% | |
| 1 week | -1.51% | 6 months | -0.16% | |
| 1 month | -7.23% | 1 year | 9.19% |
Details
| Prev close | 1.4694 | 52 week high | 1.6038 | |
| Last trade | 1.4701 | 52 week low | 1.337 | |
| High | 1.4713 | Low | 1.4631 |
Bloomberg Median Forecasts
| Q3 2008 | 1.54 | Q4 2008 | 1.50 | |
| Q1 2009 | 1.45 |
Commentary
Despite the battered U.S. economy, the dollar continues to be the darling of the foreign exchange world, propped up by decreasing crude oil prices and the tattered, withering condition of indicators in the eurozone. Even moderately positive data like the German economic confidence figures released this morning can't shake the overall wet blanket of bad financial news dragging down all of Europe. Meanwhile, precipitous producer prices in the U.S., reaching their highest levels in almost 30 years, ignited talk of the Federal Reserve raising interest rates. "When even minor speculation about increasing interest rates starts to make the rounds, the dollar becomes quite attractive to investors," said IG Markets senior broker Ari Estrada. Dan Cook, Chicago
USD/CAD Performance Chart (08/19/08 - 12:15 p.m. EST)
| Daily % Chg | -0.08% | 3 months | 8.12% | |
| 1 week | 0.00% | 6 months | 4.58% | |
| 1 month | 5.77% | 1 year | 0.30% |
Details
| Prev close | 1.0646 | 52 week high | 1.0795 | |
| Last trade | 1.0637 | 52 week low | 0.9058 | |
| High | 1.0668 | Low | 1.0626 |
Bloomberg Median Forecasts
| Q3 2008 | 1.04 | Q4 2008 | 1.06 | |
| Q1 2009 | 1.08 |
Commentary
A ravenous demand for automotive products drove Canadian wholesale sales up 2% to $45.2 billion in June, the fifth increase in six months [1]. But even that data can't eclipse the power of the declining price of crude oil. "We foresee future gains in USD/CAD due to the declining cost of oil, along with the flagging global economy. And remember, a commodity-driven economy, like Canada and Australia and some others, is very vulnerable to the up-and-down whims of oil and gold," said IG Markets senior broker Jared Bonnette. "Until recently, the meteoric price of oil has driven up the value of the loonie. But even foreign exchange must follow the laws of gravity," Bonnette elaborated. Canada's leading indicators, a key measure of economic stability, are set for release tomorrow. Dan Cook, Chicago
USD/JPY Performance Chart (08/19/08 – 12:15 p.m. EST)
| Daily % Chg | -0.34% | 3 months | 6.51% | |
| 1 week | 0.45% | 6 months | 1.84% | |
| 1 month | 2.62% | 1 year | -4.02% |
Details
| Prev close | 110.13 | 52 week high | 117.94 | |
| Last trade | 109.76 | 52 week low | 95.76 | |
| High | 110.33 | Low | 109.67 |
Bloomberg Median Forecasts
| Q3 2008 | 107.00 | Q4 2008 | 107.00 | |
| Q1 2009 | 108.50 |
Commentary
Notes: Source: [1] Statistics Canada (Aug. 19, 2008). [2] Reuters (Aug. 19, 2008). Chart data sourced from Bloomberg. Bloomberg Median Forecasts are produced by Bloomberg by taking the median level from rates forecast by a number of contributors. These contributors consist of leading banks and security firms.
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