Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Aug 11 08 06:02 GMT |

The new week of trading was not without drama right from the open as the market looked to continue where Friday's 2% drop in EUR/USD left off. After the Euro was decimated late last week in what many have foreseen as a day of reckoning where it plummeted from 1.5500 to settle on Friday near 1.5006, today's opening looked to set the tone for the US Dollar, and boy, did it. On the open the EUR/USD gapped open on a combination of follow-through selling, poor liquidity and massive stops to start the week near 1.4930, only to continue lower to a low of 1.4905 early on. The pair quickly stabilized and slowly but surely made back some lost ground. 1.4980 was the level as of this writing, still a long way from the Friday close. USD/JPY did not dance in step to the Dollar's tune as the pair sold off as the Dollar rallied elsewhere. The pair opened a bit higher to touch its session high of 110.38 early, and then fell straight down to touch a 109.60 low before the rebound. The Yen has been holding up well in the face of adversity, and can be argued to be the second strongest currency out there behind the USD. The pair had moved back to a 110.10 level as the session waned. In Australia and New Zealand things looked gloomier as these pairs fell victim to the early Greenback rally, both pairs slipping about 30 pips on the open and never fully recovering. The RBA's Quarterly Statement on Monetary Policy stated that inflation would stay on the high side through the year as traders tried to forecast if a potential rate cut for next month could be .25 or .50 basis points. The following few sessions should be a measuring rod for the Dollar as crude oil seems to be bouncing back as the conflict rages between Russia and Georgia that threatens Georgia's direct oil pipeline to the coast. As well, many feel that last week's equity gains are going to be tough to maintain for a second week in a row. We shall see. Upcoming Economic Data Releases (London Session): 8/11/2008 6:00 GE Wholesale price Index (YoY) JUL 8.9% 9.0% 8/11/2008 6:00 GE Wholesale Price Index (MoM) JUL 0.9% 0.5% 8/11/2008 6:45 FR Industrial Production (MoM) JUN -2.6% 0.6% 8/11/2008 6:45 FR Industrial Production (YoY) JUN -1.2% 0.5% 8/11/2008 6:45 FR Manufacturing Production (MoM) JUN - - 0.3% 8/11/2008 6:45 FR Manufacturing Production (YoY) JUN - - 0.1% 8/11/2008 8:30 UK PPI Input s.a. (MoM) JUL 2.1% 1.0% 8/11/2008 8:30 UK PPI Input NSA (YoY) JUL 30.3% 29.8% 8/11/2008 8:30 UK PPI Output n.s.a. (MoM) JUL 0.9% 0.5% 8/11/2008 8:30 UK PPI Output n.s.a. (YoY) JUL 10.0% 10.3% 8/11/2008 8:30 UK PPI Output Core SA (MoM) JUL 0.3% 0.4% 8/11/2008 8:30 UK PPI Output Core NSA (YoY) JUL 6.4% 6.5% 8/11/2008 8:30 UK Visible Trade Balance GBP/Mn JUN -£7494 -£7400 8/11/2008 8:30 UK Trade Balance Non EU GBP/Mn JUN -£4027 -£4000 8/11/2008 8:30 UK Total Trade Balance (GBP/Mln) JUN -£4248 -£4200 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.