Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Sep 22 08 03:30 GMT |

Asia came in to a bit of relief. After a few weeks of unprecedented moves in the financial markets, markets were relatively tame today albeit still choppy. JPY crosses gapped lower from Friday after bouncing with US equities. Part of the reason was that there is still some uncertainty concerning the details of the bailout package. There was also some interest to sell the USD as EUR/USD finally rallied through 1.4500. The thinking with the USD is that the injection of liquidity into the markets could become inflationary as well as putting the US government’s own financial healthy at risk. Looking forward we have a light economic calendar in London but the market is being driven more by news flow anyway. Other countries are joining the Fed in increasing liquidity and restricting short sales in equity markets. While in the near term this is being viewed as positive, the long term implications could be negative. Could we be planting the seeds for a future disaster? Upcoming Economic Data Releases (London Session): 9/22/2008 7:00 EC ECB's Trichet Speaks in Bratislava 9/22/2008 8:00 UK BOE's Gieve to Make Speech 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.