Currencies Slightly Higher on Stronger Earnings (Midday Snapshot)

Published July 17th, 2009 - 10:23 GMT


MIDDAY SNAPSHOT

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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