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Friday’s Brief

|Includes: ELEMENTS Australian Dollar (ADE), BEO, BEP, CNY, ERO, EWA, EZU, FEZ, FXB, FXC, FXE, FXF, FXY, GBB, GLD, GRE, JYN, NFP, SPY, SPY, UDN, UUP, VCR, XLY
  • All of the currencies are in a consolidation mode as they take profits from a superb rally. The Euro, Pound, Aussie, Kiwi, and Loonie are currently in range trading. However, the volatility might pick up in today’s trading as options and futures expire for the month of June.
     

  • The Euro gained roughly 2.5% over this week against the buck, Swiss Franc rose more than 3% during the same timeframe. The Aussie, Kiwi, and Cable rose more than 2% during this week.
     

  • Canadian economy continues to act on all cylinders. The latest International Securities Transactions printed an amazing result. The figure which have state the difference between exports and imports within Canada, suggest that our friends to the North are thriving in this environment. Securities Transactions came in at 12.38B v 2.0B anticipated. Leading Index also printed higher at 0.9% beating estimates of 0.7%.
     

  • The Euro continues to perform well after Spain’s ability to raise debt was seen as positive. However, the next test lies in Spain’s ability to rollover July’s €16.2B in July’s debt, which dwarfs €3.5B raised this month.


  • German Producer Prices rose more than anticipates to 0.9% year-over-year. The following is positive for the EU bloc as Germany is the biggest economy in the zone. Inflation of 2.0% seems ideal for the ECB; therefore, any rise in inflationary pressures during this point of time would be reacted as positive.


  • In U.K. the private seems to be borrowing a greater amount than in the previous months, a good sign for the banking sector. Increasing lending is beneficial for the banking sector and suggests liquidity is present in the economy.


 



Disclosure: No Positions