Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Nov 07 08 08:52 GMT |

The Euro ended the Asian week dramatically as it bottomed out and reversed against the Yen and US Dollar ahead of tomorrow's Non Farm Payrolls data. After US equities were crushed once again, the Asian markets followed the same path and the EUR/JPY was sold early and often from the 124.24 open to a session low of 122.42. As the equities reversed, so did the EUR/JPY, as it was through 125.00 already as London began the day. All other Yen crosses followed the same pattern as risk aversion dried up on the equity bounce. USD/JPY dropped from 97.76 to 96.75 before reversing back to 97.80, and subsequently looked weak at 97.20 in early London. EUR/USD dropped from early highs of 1.2741 to lows of 1.2652 before bouncing back to levels just under 1.2800. The Euro reversal was a welcomed relief after the European currency began its slide after the ECB's reluctant rate cut. Look for the US President elect Obama to possibly announce his Secretary of the Treasury tomorrow, with the popular candidates being former Fed chairman Volcker, NY Fed president Geithner, former Treasury Secretary Summers and current NJ governor and former Goldman Sachs head Corizine. It will go without saying that this announcement may have an impact on both the equity as well as FX markets, particularly EUR/USD. The final hurrah of the week is tomorrows Non Farm Payrolls in NY where the consensus is a drop of about 200k jobs. Have a good weekend. Upcoming Economic Data Releases (London Session): 11/7/2008 7:00 GE Trade Balance SEP 10.6B 13.5B 11/7/2008 7:00 GE Current Account (EURO) SEP 7.3B 10.3B 11/7/2008 7:00 GE Imports SA (MoM) SEP -2.50% -1.00% 11/7/2008 7:00 GE Exports SA (MoM) SEP -0.50% 0.60% 11/7/2008 7:45 FR Trade Balance (Euros) SEP -5.4B -5.0B 11/7/2008 7:45 FR Central Govt. Balance (Euros) SEP -67.6B - - 11/7/2008 11:00 GE Industrial Prod. YoY (nsa wda) SEP 1.70% -0.50% 11/7/2008 11:00 GE Industrial Production MoM (sa) SEP 3.40% -1.70% 11/7/2008 12:00 CA Unemployment Rate OCT 6.10% 6.20% 11/7/2008 12:00 CA Net Change in Employment OCT 106.9K -10.0K 11/7/2008 12:00 EC EU Holds Summit on Global Financial System 7-Nov 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.