London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Nov 03 08 13:03 GMT |

In a relatively quiet London session, the buck had an overall mixed performance against the majors. EUR/USD was about 20 pips higher into the 1.2845/50 zone despite poor economic data out of the Euro-zone. French and German October PMI manufacturing indexes were revised lower to 40.6 and 42.9 respectively -- both worse than expected. Meanwhile, the Euro-zone measure fell to 41.1 from 41.3 previously. GBP/USD was crushed more than -110 pips on poor economic data and growing speculation that the BOE will cut rates more than the currently expected -50 bps this week. PMI manufacturing for the UK was a touch better than expected but the report looked terrible nonetheless, coming at a paltry 41.5 after a similar 41.2 print the prior month. This saw Cable dip from an open near 1.6300 towards the 1.6185/90 area in London trading. The JPY crosses were pretty much unchanged and held on to the gains in the previous session. USD/JPY was sitting near 99.20/30 and right where it opened London trading. EUR/JPY was up a modest 15 pips towards the 127.40/50 area. US stock futures are pointing to a small positive open, but the ISM manufacturing report looms at 1000ET and this could throw a wrench into the good US equity performance seen over the last few days. Look for a change in direction here to see JPY crosses follow lower. Upcoming Economic Data Releases (NY Session) Prior Estimate 11/3/2008 15:00 GMT US ISM Manufacturing OCT 43.5 41.8 11/3/2008 15:00 GMT US ISM Prices Paid OCT 53.5 48 11/3/2008 15:00 GMT US Construction Spending MoM SEP 0.00% -0.80% 11/3/2008 16:00 GMT EC Euro-Area Finance Ministers Meet 3-Nov 11/3/2008 US Domestic Vehicle Sales OCT 9.6M 9.1M 11/3/2008 US Total Vehicle Sales OCT 12.5M 12.0M 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.