World Currencies Are a Mixed Bag as Events in Egypt Prove Less Influential

by: MyPlanIQ

A mixed bag of results this week as the crisis in Egypt continues but is not as much in the front of investors' minds. Still the safe haven currencies are in favor and the rest have a mild downward movement.

Assets Class Symbols 02/09
Swedish Krona FXS 7.54% 6.88% ^
Australia Dollar FXA 6.98% 6.14% ^
Swiss Franc FXF 4.38% 6.02% v
Mexican Peso FXM 3.64% 3.25% ^
G10 Carry Trade DBV 2.64% 1.4% ^
US Dollar Bearish UDN 2.43% 2.52% v
Japanese Yen FXY 2.35% 3.83% v
Canadian Dollar FXC 2.25% 2.75% v
Euro FXE 2.01% 1.53% ^
British Pound FXB 1.41% 2.0% v
Chinese Yuan CYB 0.32% 0.27% ^
Brazilian Real BZF 0.17% -0.96% ^

The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).

click on charts to enlarge

The Swedish Krona dropped a little this week as risk aversion abated. It is still looking a strong with the government willing to let the currency increase in value as they don't believe this will hurt the economy.

The Aussie Dollar was slightly down for the week with its relative safety challenged by some poor employment data raising concerns that the recovery is not as strong as first thought leading to the worry that the currency is overvalued.

Similarly the Swiss Franc is a natural haven in times of stress but unexpectedly bad Consumer Price index numbers knocked it back

The Real jumped this week as the government stepped in to reduce spending to try and cool growth. The fundamental strength will drive the currency up once the underlying mechanics have been addressed and this is one key step.

There was not much news on the Yuan which drifts higher being away from north Africa but is still beset with trade imbalance and currency value concerns.

The British pound is under pressure from high debt and shrinking GDP which will be a drag for a while to come.

Disclosure: MyPlanIQ does not have any business relationship with the company or companies providing the ETFs mentioned in this article.

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