Asia Session Recap
After another disastrous day for US equities and news that the US Congress would delay the possibility of loans to the ''Big Three'' automakers we saw losses extend to Asian stocks and the Yen strengthen further. USD/JPY finished its fall from NY highs of 96.23 early in Asian trading at 93.56, where profit takers came swooping in on the Yen prior to the holiday extended weekend in Japan. After an initial open of 2% in the red, the Nikkei 225 reversed into positive territory, also helping to push USD/JPY back to the 95.00 region. The Yen looks to continue its monumental gains until some of the gloom and doom is pushed aside by positive news in the rescue of the unworthy US automakers, and that news looks to be on hold until at least December at the moment. The Yen had similar moves versus the Euro, as EUR/JPY continued its free fall from the NY session only to hit a three week bottom at 116.41 and bounce back to levels just under 119.00 as London began its day. As expected, the BoJ kept Japan's rate unchanged at 0.30% by unanimous decision. The EUR/USD continued to be driven by EUR/JPY moves, as it reversed from 1.2422 to reach levels in the 1.2540 area. Many expect another rate cut by the ECB on the upcoming December 4th meeting.
With rumors swirling that the RBA was camping out at the 0.6075 level in AUD/USD, we saw that pair bid all session hitting a 0.6240 high after touching a hair above the supposed RBA bidding.
Remember that Japan will be on it's Labor Thanksgiving Day holiday on Monday, so thinner FX markets can be expected. Have a nice weekend.
Upcoming Economic Data Releases (London Session):
| 11/21/2008 |
7:45 |
FR |
Consumer Spending (MoM) |
OCT |
0.60% |
- - |
| 11/21/2008 |
7:45 |
FR |
Consumer Spending (YoY) |
OCT |
1.50% |
0.90% |
| 11/21/2008 |
8:00 |
FR |
PMI Manufacturing |
NOV P |
40.6 |
40 |
| 11/21/2008 |
8:00 |
FR |
PMI Services |
NOV P |
47.5 |
46.9 |
| 11/21/2008 |
8:30 |
GE |
PMI Manufacturing |
NOV A |
42.9 |
42 |
| 11/21/2008 |
8:30 |
GE |
PMI Services |
NOV A |
48.3 |
47.5 |
| 11/21/2008 |
9:00 |
EC |
PMI Manufacturing |
NOV A |
41.1 |
40.5 |
| 11/21/2008 |
9:00 |
EC |
PMI Services |
NOV A |
45.8 |
45 |
| 11/21/2008 |
9:00 |
EC |
PMI Composite |
NOV A |
43.6 |
42.8 |
| 11/21/2008 |
|
JN |
Cabinet Office Monthly Economic Report |
21-Nov |
|
|
| 11/21/2008 |
10:30 |
GE |
ECB's Weber Holds a Speech in Frankfurt |
21-Nov |
|
|
| 11/21/2008 |
11:30 |
EC |
ECB's Gonzalez-Paramo Gives Speech in Madrid |
21-Nov |
|
|
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