New York Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jan 20 09 01:15 GMT |

The New York Session saw a relatively muted range due to the US holiday and the absence of stock and bond markets, but the USD emerged stronger at the end of the day as risk aversion remained the primary driver. Traders continued to fear the effects of a global recession and the negative impact on investing returns, leading them to shun riskier asset plays, buying the USD and selling carry trades (JPY-crosses like EUR/JPY). Earlier negative news out of the UK and Europe over additional bailouts for the British banking sector added to the pressure on those currencies and induced additional selling. Many commodity exchanges were closed for the US holiday, but spot oil and gold prices continued to soften, further supporting the USD. Upcoming Economic Data Releases (Asia Session) 1/19/2009 23:50 JN Tertiary Industry Index (MoM) NOV 0.40% -0.80% 1/20/2009 5:00 JN Consumer Confidence DEC 28.7 27.5 1/20/2009 5:00 JN Consumer Confidence Households DEC 28.4 27.9 1/20/2009 6:00 JN Machine Tool Orders (YoY) DEC F -71.90% - - 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.