Thu, 02 Aug 2007 15:28:37 MDT
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Written by Daily FX
The Canadian Dollar has shown truly impressive strength in the first half of the year, reaching 30 year highs against its US dollar and outperforming all major currencies on a year-to-date basis.
The Loonie made a definitive turn higher in late March on speculation that the Bank of Canada would raise interest rates through the medium term. Indeed, domestic Core CPI jumped well-above the central bank's target of 2.0 percent and has led to the BoC's decision to take rates to 4.50 percent through July.
Thu, 02 Aug 2007 15:24:24 MDT
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Written by Daily FX
The Swiss franc has been trading in a relatively tight range against the US dollar throughout the first half of 2007.
Yet, over the last four weeks, market conditions seem to have changed and the franc staged an impressive recovery against the US dollar on speculation that the Swiss National Bank (SNB) could accelerate the pace of monetary policy tightening to fight inflation. The franc gained nearly 4 percent against the US dollar, trading from a high of 1.2476 on June 14th to a low of 1.1992 on July 11th.
Thu, 02 Aug 2007 15:20:02 MDT
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Written by Dailyfx
After reaching fresh 26-year highs of 2.0402 against the Dollar, some analysts see the pair as being top heavy and ready to retrace some of its gains. Interest rates remain the key to further pound strength and with US short term rates having reached their peak, the GBP/USD could hold at lofty levels.
Thu, 02 Aug 2007 15:13:02 MDT
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Written by Daily FX
The second quarter was a phenomenal time to be short the Japanese Yen. Not only did the Yen fall against the US dollar, but it also dropped to decade and in some cases, multi-decade lows against every major currency.
From the beginning of April to the end of June, USD/JPY rallied over 600 pips with virtually no retracement. However this impressive move pales in comparison to the 1000 point rally in AUD/JPY, the 1200 point rally in NZD/JPY and the 1400 point rally in GBP/JPY.
Thu, 02 Aug 2007 14:50:44 MDT
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Written by Daily FX
Euro's strength against the greenback can be summarized in two simple words - relative growth. Eurozone GDP growth in Q1 registered a reading of 3.1% while US GDP for the same period printed at a paltry 0.7%. Furthermore, as 2007 moves forward few analysts project a strong recovery in US demand, while Euro-zone growth continues to surprise to the upside.
