London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 28 08 11:55 GMT |

Credit concerns continued to plague US marts and led to some selling of the buck in the London session. A news report cited Minneapolis Fed President Stern, a noted hawk, saying that the US credit crunch is poised to worsen. Traders had nothing else to bite on and thus took this as a sign to sell the greenback. EUR/USD was higher despite the German GfK consumer confidence report coming in at a weaker than expected 2.1 for August after a 3.6 print for the prior month. This continued the trend of deteriorating economic data out of the Euro-zone. And whether it is businesses or consumers, the data have not been pretty of late. EUR/USD opened the session near 1.5715 and was sitting near the session highs at 1.5760 at the close. Sterling (GBP/USD) lost some ground against the buck as a report by the Land Registry showed home prices fell -1% in June, the biggest monthly drop on record (survey started in 2000). This pushed Sterling from an open near 1.9895 to a session low near 1.9840. The pair would close around the 1.9880 mark. USD/JPY saw some very choppy trading, but ended the session lower nonetheless. The pair opened near 107.80 and closed around the 107.65 level. Given the intensified concerns about US credit markets -- on Stern’s comments -- USD/JPY is likely to follow the goings on in US stock markets today. If fear grips the market once again, look for sharp declines in banking stocks and JPY crosses to move lower. Upcoming Economic Data Releases (NY Session) Prior Estimate 7/28 16:00 GMT US Fed's Mishkin Speaks on Communication in Washington 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.