London Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jan 16 09 13:31 GMT |

Risk aversion was back in vogue as the near $140 billion announced bailout of a large US bank was taken as a major positive and a step forward in stabilizing the banking system. Stocks across the globe were bid with Europe adding nearly 3% across the board and US futures up almost 2% on the follow. In FX, the flavor was higher EUR and better bid yen crosses. EUR/USD rallied about 50 pips in London trading and was sitting near 1.3270 ahead of the NY open. The pair should see good resistance into 1.3340 now and we would focus lower on a break under the 100hr SMA which currently sits by the 1.3230 mark. EUR/JPY jumped more than 80 points towards 120.20/30 and USD/JPY added a more modest 30 pips into the 90.50/60 zone. USD/CAD shed about -50 pips to 1.2370/80 as crude oil rallied above the near term $35/bbl pivot. Upcoming Economic Data Releases (NY Session) prev est 1/16 13:30 GMT US Consumer Price Index (MoM) DEC -1.7% -0.9% 1/16 13:30 GMT US CPI Ex Food & Energy (MoM) DEC 0.0% 0.1% 1/16 14:00 GMT US Total Net TIC Flows NOV $286.3B - - 1/16 14:15 GMT US Industrial Production DEC -0.6% -1.0% 1/16 15:00 GMT US Michigan Confidence JAN P 60.1 59.0 1/16 17:00 GMT SZ SNB Vice President Hildebrand Holds Speech 1/16 17:15 GMT US Fed's Lacker Speaks on U.S. Economy 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.