Asia Session Recap

Daily Forex Fundamentals |  Written by Forex.com |  Sep 10 08 03:12 GMT |

If there is a word to describe today's Asia session it would be: choppy. The main driver in the market has moved from Fannie Mae and Freddie Mac to the fate of Lehman Brothers, a major US investment bank. EUR/USD was stuck between the 1.4100 and 1.4150 levels while USD/JPY remained between 107.35 and 106.65. The whippy price action is just another testament of the high degree of emotion that is dominating the financial markets in these unprecedented times. Interestingly, commodities are experiencing another wave of selling. Gold just broke to levels not seen since 2007 and crude oil is approaching the $100 mark. Typically we have seen a negative correlation between commodities and the USD but this last move has not seen fresh highs in the USD. Are we seeing a divergence and which market is leading? It is still too early to tell but just something to watch. Looking forward the focus is clearly Lehman's announcement tomorrow and we expect some positioning in front of the release. Will traders reduce risk or make their bets now? In either case, look for volatility to explode especially if the outcome is significantly different from expectations. Upcoming Economic Data Releases (London Session): 9/10 6:45 FR Industrial Production (MoM) JUL -0.40% 0.20% 9/10 6:45 FR Industrial Production (YoY) JUL -1.60% -2.50% 9/10 6:45 FR Manufacturing Production (MoM) JUL -0.80% 0.40% 9/10 6:45 FR Manufacturing Production (YoY) JUL -2.10% -3.00% 9/10 6:45 FR Trade Balance (Euros) JUL -5.6B -5.0B 9/10 7:00 BE ECB's Trichet, Juncker Speak at EU Parliament in Brussels 10-Sep 9/10 8:30 UK Visible Trade Balance GBP/Mn JUL -£7684 -£7500 9/10 8:30 UK Trade Balance Non EU GBP/Mn JUL -£4744 -£4500 9/10 8:30 UK Total Trade Balance (GBP/Mln) JUL -£4414 -£4200 9/10 9:45 EC European Commission Releases Economic Growth Forecasts 10-Sep 9/10 10:15 SZ SNB's Hildebrand Holds Speech in Geneva, Switzerland 10-Sep 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.