London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 30 08 11:44 GMT |

The greenback traded sideways against the majors in the London session, moving about 15 pips on average from open to close. Data out of the Euro-zone remained weak as both business and consumer confidence numbers came in below expectations. Consumer confidence across the pond slipped to -20 in July from -17 the prior month while manufacturing confidence fell to -8 from -5 and services industry confidence pulled back to 1 from 9 in June. EUR/USD was modestly lower, opening near 1.5592 and closing the session around the 1.5588 mark. The market awaits the ADP employment report out of the US this morning, which should provide the pair with some price action. That said, any outsized reaction to the number could see a reversal as this indicator's predictive ability as far as NFP goes has been deplorable of late. USD/JPY pulled back a touch from an open near 107.98 to a close around the 107.80 level. Robust stock markets overseas -- with Asia up about 2% and Europe adding about 1% -- helped keep carry trades on the table and limited the downside to the pair. The news this morning that President Bush signed the housing relief/GSE bailout bill is likely to get a positive reaction from stocks in NY trading. The market these days seems to look for any excuse to rally -- just look at what they did yesterday when they viewed the latest huge credit market write-down as a positive. Another rally in US stocks, on top of yesterday’s 2.5% gain, should prop USD/JPY back above the 108.00 mark. Upcoming Economic Data Releases (NY Session) Prior Estimate 7/30 12:15 GMT US ADP Employment Change JUL -79K -53K 7/30 12:30 GMT CA Industrial Product Price MoM JUN 0.60% 1.00% 7/30 12:30 GMT CA Raw Materials Price Index MoM JUN 3.10% 3.00% 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.