Daily Forex Fundamentals | Written by Forex.com | Jul 07 08 05:22 GMT | The agenda of the 3 day G8 meeting which began today in Japan is to be rising oil and food costs as well as climate changes. It will remain to be seen if any talk of the weak dollar will be released from the summit, but the weak dollar and high oil prices seem to go hand-in-hand these days. As well, tonight's comments by US President Bush who once again restated the US believes in a 'strong dollar policy' seemed to ring hollow, much like the boy who cried wolf. With 'dollar' comments prior to the meeting, it can logically be assumed that their will be 'dollar' comments post G8 as well. Regardless, it will be of interest to see what the rhetoric is post meeting as a strong group of governments make a concerted effort to battle exorbitant energy and commodity prices. If the G8 fails to budge the FX markets, the US Fed's talking heads probably will, as there are a total of four Fed officials scheduled to speak this week, including Chairman Ben Bernanke and Treasury Secretary Paulson testifying at the House Financial Services Committee on Tuesday. Upcoming Economic Data Releases (London Session): Forex.com
The new week began in Asia with some follow through of Dollar strength, and some people looking ahead to any possible effects the current G8 meeting may have on the FX markets. After last weeks signaling from the ECBs Trichet that the rate hike may be 'one and done' and the US employments data not looking as horrible as it could be, the dollar gained ground into a long holiday weekend.
The Greenback extended those gains in Asia as EUR/USD started the session near the 1.5706 high and over the course of the session hit some lows near 1.5632 before a 15 pip reversal to end the session. USD/JPY showed the same stamina by the Dollar as the pair opened the session near 106.75 and tapped a low of 106.66 before taking off to highs near 107.26. The USD lost a bit of steam though and exited the session close to 107.15. The EUR/JPY chart looked like a letter 'V' for the session as the pair hit 167.68 before the low of 167.13, and the following high of 167.74. The pair maintained the level as the session came to a close.
7/7 5:45 SZ Unemployment Rate (sa) JUN 2.5% 2.5% 7/7 6:30 AU Foreign Reserves JUN A$35.3B - - 7/7 8:30 EC Sentix Investor Confidence JUL 5.2 - - 7/7 8:30 UK Industrial Production (MoM) MAY 0.2% -0.1% 7/7 8:30 UK Industrial Production (YoY) MAY 0.2% -0.7% 7/7 8:30 UK Manufacturing Production (MoM) MAY 0.1% 0.0% 7/7 8:30 UK Manufacturing Production (YoY) MAY 0.1% -0.1% 7/7 10:00 GE Industrial Prod. YoY (nsa wda) MAY 4.8% 3.2% 7/7 10:00 GE Industrial Production MoM (sa) MAY -0.8% 0.2%
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Monday, July 7, 2008
Asia Session Recap
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