Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Sep 04 08 05:57 GMT |

This session, EUR/USD took a wild ride in a fifty pip range, but ultimately ended the session only a little lower from where it started off. The pair hit an early high of 1.4527, and then fell to a low of 1.4471; the net result was a session exit of around 1.4490, a little lower than the open. A good deal of the trading could be position squaring ahead of both the ECB and BoE interest decisions which are a little later in early NY. The general consensus is that both central banks leave rates unchanged. Most believe the ECB could begin to raise rates early neat year and the BoE could begin its cycle as early as the end of 2008. GBP/USD was as bouncy as the Euro, and as the Euro, really went nowhere. The market began the session near the high of 1.7765, slid to lows near 1.7714, and hit all the points in between before closing out near, 1.7755. Both the Euro and Pound have had a horrible run versus the dollar over the past month or so as traders see the economy of Europe slowing down as the US economy may have been the first in trouble, but will also be the first out of it. EUR/GBP hit another record high of 0.8188 this session as the drive North for this pair continues with great vigor. In Australia, the Trade Balance data disappointed, and the AUD/USD pair suffered for it, as it collapsed from 0.8355 to lows of 0.8302….once again, a level not seen in about a year. The pair eventually regained its footing to end up near 0.8320. AUD/JPY followed the same path, falling from 90.57 to levels of 89.25. The key, and pretty much only things you should be cognizant of in the coming hours is the above mentioned BoE and ECB rate decisions. As usual, its not always the rate decision that moves a pair, but the statements that follow the decision…… Upcoming Economic Data Releases (London Session): 9/4 6:45 FR ILO Unemployment Rate 2Q 7.50% - - 9/4 6:45 FR ILO Mainland Unemployment Rate 2Q 7.20% 7.20% 9/4 6:45 FR Mainland Unemp. Change (000s) 2Q -77K -13K 9/4 10:00 GE Factory Orders MoM (sa) JUL -2.90% 0.30% 9/4 10:00 GE Factory Orders YoY (nsa) JUL -6.10% -2.20% 9/4 11:00 UK BOE ANNOUNCES RATES 4-Sep 5.00% 5.00% 9/4 11:45 EC ECB Announces Interest Rates 4-Sep 4.25% 4.25% 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.