Following some initial lackluster trade, the markets finally decided to react positively to the morning developments, with the much better earnings out of the financial sector and stronger US housing data helping to fuel gains in currencies and equities, while the Yen and the USD were the standout losers. However, even with the rally in currencies, and buying back into risk, there were no significant moves on Friday, with market participants also wary of the deceptive earnings results. Citigroup’s gain came on the back of an M&A related deal, while GE posted a sizeable loss. CIT remained a big story and had some encouraging news after talk of Goldman and JP Morgan involvement. Canadian inflation data was as expected while leading indicators north of the border were weaker. This didn’t stop the Loonie from outperforming on the day, with the relative gains attributed to higher oil prices. Meanwhile Kiwi and Sterling were the laggards despite some gains against the buck in the US session, with Thursday’s Fitch downgrade to the outlook on New Zealand’s credit rating and the more recent downbeat IMF report on the UK weighing on these currencies. US equities are relatively flat as we head into the final hours of trade for the week. Have a good weekend.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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Monday-Friday (between 5:30am-6:30am EST)
“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
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“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Midday Snapshot” – A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
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“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
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“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)
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