New York Session Recap

Daily Forex Fundamentals | Written by Forex.com | Dec 11 08 01:26 GMT |

Risk appetite came back to the fore in the NY session as markets remain hopeful that a bailout for the US automakers will pass before the weekend. The House of Representatives is currently debating the measure and is expected to vote later tonight NY time. Stocks were bid up more than 1% despite poor economic data that showed wholesale inventories down -1.1% in October and mortgage applications declining -7.1% last week. That said, it wasn't clear that stocks were rallying on their own and it looked more like currencies led the way today in NY trading EUR/USD jumped more than 90 points and closed out the day near the 1.3020/30 area. The close above 1.30 is bullish short-term though we would now need to see a close above the late November highs by 1.3080 to suggest the move higher is for real. EUR/JPY was propped up nearly 100 pips towards 120.70/80 as Euro strength and JPY weakness helped to push the pair higher here. The 121.50 mark still looms as critical resistance and a break above this level should usher in substantial strength. USD/CAD dropped back about -40 points into 1.2560/70, as the intraday decline in oil prices on the back of the much higher than expected weekly gasoline inventory build could not be sustained. Upcoming Economic Data Releases (Asia Session) Prior Estimate 12/11/2008 0:00 GMT AU Consumer Inflation Expectation DEC 3.30% - 12/11/2008 0:30 GMT AU Unemployment Rate NOV 4.30% - 12/11/2008 0:30 GMT AU Employment Change NOV 34.3K - 12/11/2008 0:30 GMT AU Participation Rate NOV 65.30% - 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.