| Daily Forex Fundamentals | Written by Forex.com | Sep 17 08 06:06 GMT | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| It would be safe to say that the story of the session is the Federal Reserve coming to the rescue of beleaguered AIG, helping to appease fears of the insurance giant collapsing and sending ripples of panic globally. The Fed announced it would lend up to $85 billion in a two year plan and control up to 80% of the insurer; the dollar as well as equities reacted in a positive manner to the bailout. The Yen took a hit as players abandoned the 'risk aversion' trades as a new confidence was found in the stability of the US financial markets. USD/JPY was near the low at the get-go of the session, near 105.14 and took off from there as the news of the Fed bail out spread. The pair took a straight path up to hit session highs near 106.70 and eventually would settle down a bit as traders seemed to rethink the elation. The USD/JPY pair was following a path near 106.00 as the session progressed. The Bank of Japan left rates unchanged as expected at 0.5%, but that was an afterthought to the bigger news. The EUR/JPY pair jumped a quick three handles as the bailout news hit the wire, going from 148.19 to 151.57. The Yen has of late been the currency of choice as risk aversion comes and goes in the marketplace. EUR/USD was whippy, opening on 1.4075 lows and hitting a 1.4220 high by lunch time. The overall liquidity in the markets has been of concern, thus amplifying many moves over the course of the session. The Euro took a backseat to the Yen moves this session. AUD/JPY as well as NZD/JPY made significant gains of about two big figures apiece and benefitted from central banks injecting currency as well as confidence into the marketplace. The above pairs bounced back from yesterdays four year lows as traders got back into riskier positions, stock markets rebounded globally, and oil hovered closer to the $90 a barrel level than the $100 a barrel level for the first time in months. These are strange days indeed…. Upcoming Economic Data Releases (London Session):
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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wednesday, September 17, 2008
Asia Session Recap
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