Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Oct 30 08 05:59 GMT |

This session in Asia saw the Yen fall against the US Dollar and the Euro as the Nikkei surged up almost 9% and the Fed opened up swap lines to various emerging countries in need of Dollars. It is said that there was at least $30 billion available in these lines. All Asian equity markets were surging after the lunch break. With the possibility of a .25% rate cut by the BoJ tomorrow looming, many looked to take profit on the Yen, and the USD/JPY pair took off in Asia from a low of 97.22 near the open, to pop up to a high of 99.11 before reversing again to levels near 98.30. The EUR/JPY pair was back in favor as risk aversion was nowhere to be found, and buyer pushed the pair from near 125.80 to highs a few pips above 131.00. This was a big move even in light of recent market moves. All other Yen crosses followed the move, all making gains of at least two big figures. The Euro benefited from the Feds announced swap lines with Brazil, Mexico, Korea, and Singapore, as option related stops pushed the EUR/USD from 1.2941 to highs just near 1.3300. GBP/USD, AUD/USD and NZD/USD were also in high demand, hitting highs not seen in over a week. With stocks flying continue to expect the Yen sell orders to line up and the crosses to be well bid. Keep in mind that the BoJ will announce its rate decision tomorrow and then on deck for next week we have the ECB and BoE. Upcoming Economic Data Releases (London Session): 10/29/2008 GE Consumer Price Index (MoM) OCT P -0.10% -0.20% 10/29/2008 GE Consumer Price Index (YoY) OCT P 2.90% 2.40% 10/29/2008 GE CPI - EU Harmonised (MoM) OCT P -0.10% -0.20% 10/29/2008 GE CPI - EU Harmonised (YoY) OCT P 3.00% 2.60% 10/29/2008 5:00 EC European Commission Extraordinary Meeting on Financial Crisis 29-Oct 10/29/2008 5:00 NO Unemployment rate(AKU) AUG 2.40% 2.50% 10/29/2008 5:30 UK M4 Money Supply (MoM) SEP F 1.40% - - 10/29/2008 5:30 UK M4 Money Supply (YoY) SEP F 12.20% - - 10/29/2008 5:30 UK Net Consumer Credit SEP 1.2B 1.0B 10/29/2008 5:30 UK Net Lending Sec. on Dwellings SEP 0.1B 0.8B 10/29/2008 5:30 UK Mortgage Approvals SEP 32K 32K 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.