Forex Update of last Week
EURO Update:
Data released on Thursday showed that industrial output in the Eurozone had plummeted by a record 18.4 percent year-over-year in February while inflation fell by half to an all-time low. This reinforced expectations that the Eurozone economy is deteriorating and that interest rates may fall more at the upcoming European Central Bank policy meeting. In addition, it raised expectations that the much talked about "non-conventional" policies that the ECB will announce might be very aggressive in nature.
At 10:40 PM GMT, the Euro was down .4% to the US Dollar to 1.3183, down .5% to the Yen to 130.89, up .1% to the Pound, up .08% to the Canadian Dollar to 1.5931 and up .9% to the Aussie to 1.8302.
Summary of the Week:
To reiterate that risk aversion seems to be back, The Yen has seen some gains without any new developments to warrant it while the overall net sales of Aussie and Kiwi Dollars has grown. As well, as a commodity reliant economy, the Canadian Dollar has seen a boost as of late.
Investor appetite for risk has picked up over the past month as a rally in stocks and better-than-expected bank earnings fueled expectations that the financial sector and global economy may be past the worst. But this week saw caution return to the market as optimism over the global economy faded and the U.S. corporate earnings season went into full swing.
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