Previous session overview
On Monday, volatility remained the rule of thumb for the EURUSD pairing Monday, as the euro initially regained the USD1.4100 handle on the back of improved global risk appetites, only to settle back closer to Friday's closing levels.
The single currency rose initially to 1.4125 in European session and then retreated strongly after the release of weaker-than-expected euro zone industrial orders in October, which fell by 4.7% versus the expectation of a decrease of 4.0%. The euro subsequently weakened to 1.3902 in U.S. session.
The Sterling failed in getting above the key 1.5000 level and receded back to support at 1.4700. Hurting sentiment was an IMF official noting the level of UK debt is �disturbing'. GBPUSD traded with a low of 1.4689 and a high of 1.4993 before closing the day at 1.4856.
The Japanese yen slipped lower on Sunday and Monday following news that Japan's exports plunged at a record annual pace in November.
Australian dollar was quoted at USD0.6837, up from USD0.6812 late Monday. Against the Japanese yen, it was quoted at JPY61.71 from JPY61.265.
Market expectation
A major NY bank was cited for taking euro-dollar through USD1.4000 with rally peaking at USD1.4019 before momentum faded. Rate eased below the figure, currently seen settled around USD1.3985. Offers remain in place toward USD1.4020, with talk from Asia suggesting layered offers from IMM accounts placed from USD1.4030 through to USD1.4060. On the downside, US name demand seen at USD1.3900 with talk of main downside stops positioned on a break of USD1.3885.
A listless Australian dollar drifted sideways during Asian trading Tuesday, though analysts said the commodity currency may gain in the New York session on expected bleak U.S. economic data.
Interest rate futures are also expected to rally on third-quarter U.S. gross domestic product, which economists expect to show the economy contracted by 0.6%.Currency markets will be especially tuned to Trichet to see if he is dovish, or for any comments on recent Euro strengthening, analysts said.
Most important events of the day
| Date | Time:GMT | Currency | Indicator | Forecast | Prior |
| 12/23/2008 | 7:45 | EUR | French Consumer Spending m/m | -0.10% | -0.50% |
| 12/23/2008 | 9:00 | EUR | Current Account | -7.3B | -10.6B |
| 12/23/2008 | 9:00 | EUR | Italian Retail Sales m/m | -0.40% | 0.00% |
| 12/23/2008 | 9:30 | GBP | Current Account | -11.9B | -11.0B |
| 12/23/2008 | 9:30 | GBP | BBA Mortgage Approvals | 21.0K | 21.6K |
| 12/23/2008 | 9:30 | GBP | Final GDP q/q | -0.50% | -0.50% |
| 12/23/2008 | 9:30 | GBP | Index of Services 3m/3m | -0.60% | -0.40% |
| 12/23/2008 | 13:30 | USD | Final GDP Price Index q/q | 4.20% | 4.20% |
| 12/23/2008 | 13:30 | USD | Final GDP q/q | -0.50% | -0.50% |
| 12/23/2008 | 14:55 | USD | Revised UoM Consumer Sentiment | 58.5 | 59.1 |
| 12/23/2008 | 14:55 | USD | Revised UoM Inflation Expectations | 1.70% | |
| 12/23/2008 | 15:00 | USD | Existing Home Sales | 4.90M | 4.98M |
| 12/23/2008 | 15:00 | USD | New Home Sales | 417K | 433K |
| 12/23/2008 | 15:00 | USD | HPI m/m | -1.30% | -1.30% |
| 12/23/2008 | 15:00 | USD | Richmond Manufacturing Index | -40 | -38 |
| 12/23/2008 | 17:30 | EUR | ECB President Trichet Speaks | ||
| 12/23/2008 | 23:50 | JPY | BSI Manufacturing Index | -12 | -10 |
