New York Session Recap

Daily Forex Fundamentals | Written by Forex.com | Aug 07 08 21:37 GMT |

The ECB press statement was the focus in NY trading as Trichet's mild recognition of economic deterioration in the Euro-zone sent the USD higher. Trichet only went as far as saying that the recent data suggest some of the downside risks to growth may be materializing, but that was enough to send EURUSD down nearly 140 pips in the session.

EURUSD opened NY trading near 1.5460 and initially shot up to 1.5500 on the ECB's continued hawkish inflation rhetoric. The pair would close near 1.5325 as it became clear that the central bank is recognizing the very real downside risks to growth.

GBPUSD followed suit, dipping from an open near 1.9505 to a close around the 1.9440 mark. Dollar strength resonated in USDCAD as well, with the pair extending gains from an open near 1.0475 to a close of 1.0530 despite flat oil prices.

USDJPY was flat in the session as the USD strength battled a US stock market rout. Stocks plummeted -2% in the session on an earnings disappointment from a major insurance company, with the sector plunging -5% on the day. This left USDJPY sitting near 109.45 after opening right around that area.

Upcoming Economic Data Releases (Asia Session) Prior Estimate

* 8/7/2008 23:50 GMT JN Loans Individual Hfund YoY 2Q 3.70% - -
* 8/7/2008 23:50 GMT JN Japan Money Stock M3 YoY JUL 0.90% 1.00%
* 8/7/2008 23:50 GMT JN Japan Money Stock M2 YoY JUL 2.30% 2.40%
* 8/7/2008 23:50 GMT JN Bank Lending incl Trusts(YoY) JUL 1.80% - -
* 8/7/2008 23:50 GMT JN Bank Lending Banks ex-Trust Y% JUL 2.00% - -
* 8/7/2008 23:50 GMT JN Bank Lending Banks Adjust YoY JUL 2.40% - -
* 8/8/2008 4:30 GMT JN Bankruptcies (YoY) JUL 11.70% - -
* 8/8/2008 5:00 GMT JN Eco Watchers Survey: Current JUL 29.5 - -
* 8/8/2008 5:00 GMT JN Eco Watchers Survey: Outlook JUL 32.1 - -
* 8/8/2008 5:45 GMT SZ Unemployment Rate JUL 2.30% 2.30%
* 8/8/2008 5:45 GMT SZ Unemployment Rate (sa) JUL 2.50% 2.50%

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