Currencies Up Again, With the Exception of the Yuan
12/16/2010 0 comments
We track trends in multiple categories using ETFs.
This is the second week of currencies being largely up as the holiday season brings continued positive, albeit tentative news of world economies.
| Assets Class | Symbols | 12/08 Trend Score | 12/01 Trend Score | Direction |
|---|---|---|---|---|
| Australia Dollar | (FXA) | 7.11% | 5.02% | ^ |
| Brazilian Real | (BZF) | 6.44% | 4.84% | ^ |
| Swedish Krona | (FXS) | 4.82% | 1.93% | ^ |
| Swiss Franc | (FXF) | 4.46% | 2.32% | ^ |
| Mexican Peso | (FXM) | 2.59% | 2.48% | ^ |
| G10 Carry Trade | (DBV) | 2.14% | 1.31% | ^ |
| Japanese Yen | (FXY) | 2.1% | 1.73% | ^ |
| Canadian Dollar | (FXC) | 1.9% | 1.37% | ^ |
| British Pound | (FXB) | 1.36% | -0.55% | ^ |
| US Dollar Bearish | (UDN) | 1.16% | -0.84% | ^ |
| Chinese Yuan | (CYB) | 0.42% | 0.72% | v |
| Euro | (FXE) | 0.39% | -2.31% | ^ |
The Australian dollar continues its rise as China refrained from increasing its interest rates, boosting the commodities as well as receiving a positive report about the increasing pace of the economic recovery and on the outlook for the interest rates increases.
The Brazilian Real has no negative news as it benefits from the recovering major economies.
Despite the weekend bombings in central Stockholm, the Krona leapfrogged the Swiss Franc into third place based on higher interest rates. The Krona moved to its highest level in more than two years versus the Euro, after central bank policy makers raised the key rate.
click on charts to enlarge
The positive market sentiment in Europe was cooled after the Moody’s Investors Service said that Spain’s debt rating is reviewed for the possible downgrade. There are still concerns about the spreading of the sovereign-debt contagion across the Eurozone.
The Chinese economy and trade surplus continues to grow, but with continued concerns about imbalance and interest rates, downward pressure on future sentiment.
The pound escapes the bottom of the table, replaced by the Dollar based on the Federal Reserve signaling that it may extend its bonds purchasing program and on concerns that the US economic recovery may stall.
In conclusion, while concerns will remain for some while, all the currencies with the exception of the Yuan, were all positive.
labels:investment,
Symbols:BZF,CYB,DBV,FXA,FXB,FXC,FXE,FXF,FXM,FXS,FXY,UDN,
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