Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Sep 29 08 05:38 GMT |

As the $700 Billion Rescue Plan seemed to be a done deal, the US Dollar gained back some ground in the Asia session. While Congressional leaders and the President (who will speak about the plan at 11:35GMT), patted themselves on their backs for finally piecing together a plan that they are confidant will be approved by Congress this week the EUR/USD moved almost a handle on the news from 1.4563 to 1.4482 as the Dollar let out a sigh of relief. How long the Dollar will benefit is anyone's guess, as US equity futures sank as the day progressed. The Rescue Plan may be voted on as early as Monday or as late as Wednesday…In Europe the crisis was felt as well, with three governments joining to bail out Fortis Bank and in the UK, mortgage lender Bradford & Bingley was a prime target for government nationalization as its retail branches were bought by a Spanish Bank.

EUR/JPY moved higher early to 155.11 with risk appetite back in favor, but failed to maintain, and sank to near 153.80 by the end of the session. USD/JPY got as high as 106.96 but lost about 50 pips from that high as the session came to a close. With the possibility of greater stability in the US, the Yen looks to be weaker, as traders will buy riskier higher yielding assets funded by the Yen.

Many murmurs could be heard that the time could be right for the big central banks to join in concert to support the Dollar in hope that the Greenback will not be the victim of a loss of global confidence. Traders say a loss of faith in the Dollar would be nothing less than a 'debacle'. Currency market volatility is the highest since the last G-7 intervention in 2000.

Upcoming Economic Data Releases (London Session)
9/29/2008 8:30 UK M4 Money Supply (MoM) AUG F 1.40% - -
9/29/2008 8:30 UK M4 Money Supply (YoY) AUG F 11.50% - -
9/29/2008 8:30 UK M4 Sterling Lending (BP) AUG F 22.0B - -
9/29/2008 8:30 UK Net Consumer Credit AUG 1.1B 1.0B
9/29/2008 8:30 UK Net Lending Sec. on Dwellings AUG 3.2B 2.8B
9/29/2008 8:30 UK Mortgage Approvals AUG 33K 30K
9/29/2008 9:00 EC Business Climate Indicator SEP -0.33 -0.5
9/29/2008 9:00 EC Euro-Zone Consumer Confidence SEP -19 -19
9/29/2008 9:00 EC Euro-Zone Economic Confidence SEP 88.8 87.3
9/29/2008 9:00 EC Euro-Zone Indust. Confidence SEP -10 -12
9/29/2008 9:00 EC Euro-Zone Services Confidence SEP 3 2

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.