Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Nov 11 08 07:15 GMT |

As has been the cycle of one day optimistic, the next day pessimistic, today the optimism over yesterday's China bailout was replaced with pessimism over today's news about Circuit City's bankruptcy, AIG's further bailout, and the big 3 US automakers on the brink of collapse. As has been the case in these situations, risk aversion was back, and EUR/JPY was sold early to a 123.80 low, a dramatic slide from its earlier 128.42 high in early NY trading. With the Yen benefiting across the board in the crosses, we also saw the Dollar gain ground versus the Euro as investors looked for safety. USD/JPY reversed early losses near 97.50 and topped out at 98.28 before settling down close to 98.00. The USD/JPY range has been caught between 96.00-100.00 over the past few weeks. USD/CHF got a boost from risk aversion and saw a high of 1.1835, a level not visited in over a year. Talk of large offers above 1.1850 should help to impede the upside of this pair. Meanwhile, EUR/USD hit a 126.74 low before gaining 50 pips prior to the London open. Those levels can surely be revisited if the German and ECB ZEW data is worse than expected later on. Upcoming Economic Data Releases (London Session): 11/11/2008 9:30 UK Visible Trade Balance GBP/Mn SEP -£8198 -£8000 11/11/2008 9:30 UK Trade Balance Non EU GBP/Mn SEP -£5165 -£4950 11/11/2008 9:30 UK Total Trade Balance (GBP/Mln) SEP -£4737 -£4700 11/11/2008 9:30 UK DCLG UK House Prices (YoY) SEP -3.40% -5.40% 11/11/2008 10:00 GE ZEW Survey (Econ. Sentiment) NOV -63 -63 11/11/2008 10:00 GE Zew Survey (Current Situation) NOV -35.9 -45 11/11/2008 10:00 EC ZEW Survey (Econ. Sentiment) NOV -62.7 -60.5 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.