Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jan 16 09 06:38 GMT |

With US stocks breaking a six day losing streak amidst investor optimism about a fresh injection of capital from the stimulus package, risk appetite was back in play and the Yen suffered for it. USD/JPY bottomed out early in NY trading at 88.50 and hasn’t looked back since as the Asia session saw an early low of 89.72 quickly disappear as the pair topped out at 90.57 as of this writing. Crosses were well bid as well today, as we saw the EUR/JPY rise from 117.77 to just near 119.77, a quick and orderly two handle move. NZD/JPY made a nice reversal from NY lows of 47.15 as it flew to highs just over 49.60. AUD/JPY turned around as well, from 58.18 NY lows to 60.90 Asian highs. Many traders feel that the upcoming inauguration of President elect Obama will be good for stocks and bad news for the Yen, however it still remains to be seen how his presidency will turn around a global economic crisis. After last nights expected ECB rate cut of 50bp to 2.0 the real news was ECB President Trichet stating that a zero rate policy was not in the cards. The EUR/USD has seen some wild moves over the past 24 hours, a late NY low of 1.3025 was quickly forgotten as the pair hit a top of 1.3275 in late Asian trading, Keep in mind that US equities are closed on Monday due to the Martin Luther King holiday….we will be here as usual. Have a nice weekend. Upcoming Economic Data Releases (London Session): 1/16/2009 8:15 SZ Producer & Import Prices (MoM) DEC -1.40% -0.60% 1/16/2009 8:15 SZ Producer & Import Prices (YoY) DEC 1.10% 0.60% 1/16/2009 8:30 UK BOE Deputy Governor Gieve to Make Speech 16-Jan 1/16/2009 10:00 EC Euro-Zone Trade Balance NOV 0.9B 1.0B 1/16/2009 10:00 EC Euro-Zone Trade Balance sa NOV -1.3B -4.8B 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.