Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 18 08 05:35 GMT |

The US Dollar ended a turbulent week in Asia mixed for the session, but up overall for the week. This week's gain has ultimately been due to what looks like Wall Streets resilience in the face of the subprime crisis, however the market is still looking to tomorrow's earnings by Citigroup after yesterday's earnings by Merrill disappointed. Most look at Citigroup as a bank that did not weather the credit crisis storm very well and the Dollar could take a hit if the earnings are poor. The EUR/USD started Friday off near 1.5865, fell to 1.5821, and then reversed to close out close to where it started off, at 1.5865. The EUR/JPY pair, after dramatic trading in NY eased from those NY highs of 169.08 and began the Asian trade day near 168.50, after small peaks and valley all session we saw the pair end the week in Asia right around 168.40. In the case of GBP/JPY, just a little over 24 hours ago the pair was trading near 208.00, it peaked out in at about 4pm EST in NY near 213.60, and as London awakes to its Friday morning, we're at 212.05 This is a fine example of some of the opportunities you can find in the FX markets. As the crosses were busy, USD/JPY was pretty flat, chugging along in a 35 pip range and closing out the session near 106.20. In the UK, the GBP/USD took a hit as the BBC reported that the Treasury may change its own rules to allow more borrowing as opposed to raising taxes. The pair tumbled from earlier highs above 2.0030, but touched 1.9942 before it ended the session near 1.9970. Ahead, the spotlight will be on Citigroup as well as Crude Oil, whose 3 day decline has been a boon for the greenback, with these players at the table, anything is possible to close out the week. Enjoy the weekend…. Upcoming Economic Data Releases (London Session): 7/18 6:00 GE Producer Prices (MoM) JUN 1.00% 0.70% 7/18 6:00 GE Producer Prices (YoY) JUN 6.00% 6.50% 7/18 8:30 UK Public Finances (PSNCR) JUN 11.0B 12.6B 7/18 8:30 UK Public Sector Net Borrowing JUN 11.0B 7.4B 7/18 8:30 UK M4 Money Supply (MoM) JUN P 0.40% 0.40% 7/18 8:30 UK M4 Money Supply (YoY) JUN P 10.00% 9.70% 7/18 8:30 UK M4 Sterling Lending (BP) JUN P 4.8B 10.0B Forex.com http://www.forex.com DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.