Previous session overview
The euro and dollar are lower against the yen Friday, giving up their gains from the sharp rebound in U.S. stock markets Friday.
It was a volatile day of trading for the euro, as the currency slumped throughout the morning to test support at 1.2400 following the release of disappointing German GDP numbers, only to rocket roughly 400 points higher through the end of the day. EURUSD traded with a low of 1.2391 and a high of 1.2857 before closing the day at 1.2810.
The British pound traded within a nearly 400 point trading range on Thursday, tumbling to test support at 1.46 before rebounding toward 1.49.
The U.S. currency fell to an intraday low of JPY96.80 compared with JPY97.85 in late New York. Japanese exporters and institutional investors sold dollars to repatriate their overseas gains or hedge their currency positions, after the greenback's almost JPY4 surge Thursday.
The Canadian dollar rose slightly against the greenback primarily on technical movement and despite oil dropping to 22 month lows under USD55 a barrel.
A surge on Wall Street lifted risk appetite in Asia Friday, sending the Australian dollar sharply higher and cooling red hot interest rate futures. Helping the Australia dollar's bounce was another intervention by the Reserve Bank of Australia, which bought the currency during New York trading.
Market expectation
Look for the euro to hold on to its current gains ahead of today's CPI release and ahead of a speech from European Central Bank President Jean Claude Trichet.
Having rallied hard early after the Dow Jones Industrial Average closed 6.7% higher, the local unit tailed off as traders await the outcome of this weekend's Group of 20 industrial and developing nations meeting in Washington D.C. Although few concrete decisions are expected from the meeting, market analysts say any joint statement flagging coordinated action of some kind could impact currency markets.
Several analytics saying any EUR gains are unlikely to last. Not only are currency markets facing a fresh wave of risk aversion, that will hurt the single currency, but the euro zone's recession now looks to be deeper and longer than expected, providing another reason not buy the EUR.
Most important events of the day
| Date | Time:GMT | Currency | Indicator | Forecast | Prior |
| 11/14/2008 | 6:50 | EUR | French Prelim GDP q/q | -0.10% | -0.30% |
| 11/14/2008 | 7:00 | EUR | German Final CPI m/m | -0.20% | -0.20% |
| 11/14/2008 | 7:45 | EUR | French Prelim Non-Farm Payrolls q/q | -0.20% | -0.20% |
| 11/14/2008 | 9:00 | EUR | Italian Prelim GDP q/q | -0.20% | -0.30% |
| 11/14/2008 | 10:00 | EUR | Flash GDP q/q | -0.20% | -0.20% |
| 11/14/2008 | 10:00 | EUR | Core CPI y/y | 1.90% | 1.90% |
| 11/14/2008 | 10:00 | EUR | CPI y/y | 3.20% | 3.20% |
| 11/14/2008 | 13:30 | CAD | Manufacturing Sales m/m | -1.70% | -3.70% |
| 11/14/2008 | 13:30 | CAD | New Motor Vehicle Sales m/m | 0.90% | -2.30% |
| 11/14/2008 | 13:30 | EUR | ECB President Trichet Speaks | ||
| 11/14/2008 | 13:30 | USD | Core Retail Sales m/m | -1.10% | -0.60% |
| 11/14/2008 | 13:30 | USD | Fed Chairman Bernanke Speaks | ||
| 11/14/2008 | 13:30 | USD | Retail Sales m/m | -2.00% | -1.20% |
| 11/14/2008 | 13:30 | USD | Import Prices m/m | -4.30% | -3.00% |
| 11/14/2008 | 14:55 | USD | Prelim UoM Inflation Expectations | 3.90% | |
| 11/14/2008 | 14:55 | USD | Prelim UoM Consumer Sentiment | 56 | 57.6 |
| 11/14/2008 | 15:00 | USD | Assist Treasury Sec Kashkari Speaks | ||
| 11/14/2008 | 15:00 | USD | Business Inventories m/m | 0.10% | 0.30% |
| 11/14/2008 | 15:35 | USD | Natural Gas Storage | 45B | 12B |
| 11/14/2008 | 17:30 | USD | FOMC Member Pianalto Speaks |
