The USD seemed pretty stable this session as traders seemed to pause to digest the current playing field. With oil and gold looking weak, US and Asian equities collapsing, the global economy slowing, and to top it off, Russia forcing NATO to rethink its game plan, you’d be hard-pressed to see a trader who has a sure bet. The directional clues may be realized later in London with the German and Euro Zone ZEW Survey results. With the consensus not favorable for either number, look for EUR/USD weakness if the economic sentiment index continues to fall. The EUR/USD pair was relatively steady this session as the pair stayed within the confines of 1.4701 and 1.4667. EUR/JPY sold off almost a full handle this session as Asia equities were bashed and the pair fell from highs of 161.85 to lows of around 160.95.
The BoJ as expected, kept rates on hold at 0.5%, and as expected downgraded its view on the economy. The USD/JPY pair was all over the place, quickly hitting a low of 109.66 after an opening high of 110.22. After bouncing around the lows for a few hours, the pair reversed and made up some lost ground to right under the 110.00 level as London prepared for the trade day.
As mentioned look to the upcoming ZEW data in London, and in the US keep an eye on equities to see if a rebound is in the cards……
Upcoming Economic Data Releases (London Session):
8/19/2008
6:00
GE
Producer Prices (MoM)
JUL
0.90%
0.70%
8/19/2008
6:00
GE
Producer Prices (YoY)
JUL
6.70%
7.50%
8/19/2008
6:00
UK
Mears Group Releases First-Half Earnings
19-Aug
8/19/2008
7:30
SZ
Swiss Labor Union SGB/USS Holds Briefing on 2009 Salary Claims
19-Aug
8/19/2008
8:30
GE
German BGA Exporters Group Reviews Sector Outlook: Berlin
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