There is nothing at the moment that suggests it. The trend will not continue, but I think the Canadian Dollar is probably looking a little bit overdone at these levels.
Currently the Aussie is very well supported on dips, particularly given there is such a divergence between the Australian monetary policy, which is firmly on-hold at the moment, and the prospects of looser monetary policy in the U.S. and Europe.
I think the Yen is currently around its fundamental fair value, but before that a better level of the Yen has seen corporate profitability in Japan coming under some downward pressure.
The Sterling has gained despite the Bank of England announcements for further asset purchase and the new measures to support the economy such as funding for lending and etc.
Long positions in the US Dollar looked very stretched a month ago. What we are seeing now appears to be a gradual unwinding of long positions.
The performance of the Australian Dollar has been quiet strong and has been driven by two or three different factors.
Dr. Brycz, Professor of Microeconomics at the University of Gdańsk, on the commodity prices
The purpose of the austerity measures is to achieve a more or less balanced government's budget and, ideally, move towards reduction in the sovereign debt.
With the US economy growing slower than expected, QE3 is still on the Fed's table. While some officials argue that the QE3 should be implemented in order to stimulate the economic growth, others believe that in order the Fed to come up with the monetary accommodation there should be further deterioration of the economy. Dukascopy Bank SA interviewed Professor Knoop
What we are currently observing is that the pressure on the Euro is not subsiding, and thus we are seeing summit after summit.
First of all, the Japanese Yen is to certain extent safe haven, because while Japan has a very large debt problems as well, it is not acute, that means so far Japan has managed to finance its deficit domestically.
Definitely the Euro bloc crisis has impacted on the Swedish economy to a meaningful extent, especially through export, but also through confidence channels.
In light of deteriorating economic situation in the US, Dukascopy Bank SA interviewed Professor Lima and discussed various issues such as the Great Depression, the US debt, and measures to stimulate the economic recovery.
If we look beyond the latest very disappointing PMI data, which fell into the contractionary territory declining from 54.5 to 46.3 in June, the overall impact so far has been rather minimal.
The Aussie and the Kiwi both have been significantly outperforming for the past three-four trading days.
I do not expect anything new to come out of the EU economic summit and I think the currency market has already to a large extent priced that in.
I think the Cable might be influenced to the extent when the Euro is under pressure against the Dollar, it would tend to pull Sterling down with it.
At the moment we see some Dollar weakness against G10 currencies, or more specifically against the Euro and other commodity currencies.
It was surprisingly discouraging that EUR/USD did not react more positively on the Greek elections results.
Some experts proposed an outside-the-box solution to the Eurozone debt crisis with Germany, being highly competitive, leaving Eurozone.
By channelling funds from savers to borrowers, a financial system plays a vital role in an economy's growth process.
Currently the trend is definitely worsening with a continuing rise of unemployment.
We do not except the prices to consolidate over here, and we do not naturally think price will go up sustainably, because the macro environment has a lot of question marks.
We have seen quite strong swings in the Aussie, because over the past couple of weeks risk aversion has weighed heavily on the Australian Dollar.