| Daily Forex Fundamentals | Written by Forex.com | Feb 17 09 06:42 GMT | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Today the center stage in Asia belongs to the EUR/USD and its dramatic descent to lows not seen in almost two months as stop losses greased the tracks on a ride from just over 1.2800 to depths just under 1.2640…The triggering of these stop losses in a thinned environment were still based on fears that the unstable nature of Eastern Europe could continue to undermine the single European currency. Many Western European banks had been gobbling up the old Eastern Bloc's banks due to the regions huge credit growth. This is now a potential straw that breaks the camels back so to speak, and the market is spooked by the possibility of Eastern banks bringing down the West. Not helping the situation in Europe is the view that further, deeper rate cuts are vital to keep within the global bell curve. EUR/JPY dropped like a stone as well on the Euro weakness, falling from 117.45 to lows of just near 116.40 before a nice rebound on Yen selling. The pair is near 117.00as of this writing. The US Dollar was the big benefiter of the Euro woes, as it gained some nice real estate across the board….GBP/USD hit a 1.4184 low, and AUD/USD was pummeled from the 0.6530's to near 0.6410, while USD/CHF move up a handle and a half to 1.1745 highs, and USD/CAD moved just under a handle to top the charts at a pip or two over 1.2500. If the Euro was the center stage today, than the side show was no doubt Japan, and the resignation of Finance Minister Nakagawa amidst allegations that he was intoxicated at the G7 meeting over the weekend. (A video of the event is available for your viewing pleasure on the internet…) With the resignation announcement, Japan's economy in turmoil, and Prime Minister Aso under fire, USD/JPY flew from early 91.63 lows to highs over the 92.75 levels. There is a lot on the plate for the FX markets, including German and Euro Zone ZEW Surveys, UK CPI, and Euro Zone Trade balance later in London. Past that, in the US on Tuesday, the markets are looking to the open of Wall Street after a three day weekend and the turnaround plans set to be presented by US automakers to congress. Upcoming Economic Data Releases (London Session):
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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tuesday, February 17, 2009
Asia Session Recap
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