Previous session overview
On Friday, the euro gained ground against the dollar and yen as risk appetite returned to global markets in early activity.
The Euro found strength on the downbeat US data gaining across the board. Helping support the Euro was reported comments from Trichet that he had no plans for a zero interest rate policy.
The British pound may have fallen through most of the US trading session, but it still managed to end the day higher against the greenback.
The Japanese Yen was sold as stock markets rallied across the world. Many market participants expect an Obama rally this week and this prompted short covering into the weekend. USDJPY traded with a low of JPY89.76 and a high of JPY90.91 before closing the day around JPY90.58.
The Canadian dollar rose today after falling five straight sessions against the USD, supported by firmness in commodity prices and a return by investors to riskier assets as world equity markets rallied.
Easing risk aversion on the back of an expected extension to the U.K. government's bank bailout package lifted the Australian dollar in Asia Monday. The Australian dollar was trading at USD0.6812, up from USD0.6735. In Asian trade, it hit an intraday high of USD0.6841. Against the yen, it was trading at JPY61.87, up from JPY60.88.
Market expectation
The euro is drifting higher Monday but the advance may fade. EURUSD currently trades around USD1.3300. Bids seen placed between USD1.3385/80, a break to open a deeper move toward USD1.3250 (USD1.3249 38.2% USD1.3025/1.3387) ahead of USD1.3210/00. Offers placed USD1.3325/35, more toward USD1.3350 ahead of overnight high at USD1.3387.
For Pound support remains around USD1.4740 more between USD1.4720/00 with stronger interest noted at USD1.4685/80 ahead of USD1.4660/50. Offers placed USD1.4800/10, more between USD1.4835/50.
JPY strengthening as European players' risk aversion grows, EUR, USD selling picks up, says analysts. USDJPY last JPY90.44, 1st support at JPY90.00. EURJPY last JPY120.28, 1st support at JPY120.00.
The dollar rose against the yen in Asia Monday as players' sentiment toward the unit recovered slightly on positive expectations for the U.S. government's countermeasures to deal with the financial crisis. Players said the greenback may strengthen against the yen further this week, but at a gradual pace, and warned its downside risks still remain over the longer term.
Most important events of the day
| Date | Time:GMT | Currency | Indicator | Forecast | Prior |
| 1/19/2009 | 0:01 | GBP | Rightmove HPI m/m | -2.30% | |
| 1/19/2009 | 4:30 | JPY | Revised Industrial Production m/m | -8.10% | -8.10% |
| 1/19/2009 | 5:15 | JPY | BOJ Gov Shirakawa Speaks | ||
| 1/19/2009 | 8:15 | CHF | Retail Sales y/y | 1.50% | 2.90% |
| 1/19/2009 | 11:50 | EUR | ECB President Trichet Speaks | ||
| 1/19/2009 | 13:30 | CAD | Foreign Securities Purchases | 1.20B | 2.85B |
| 1/19/2009 | 21:45 | NZD | FPI m/m | 0.80% | |
| 1/19/2009 | 21:45 | NZD | CPI q/q | -0.40% | 1.50% |
| 1/19/2009 | 23:50 | JPY | Tertiary Industry Activity m/m | -0.80% | 0.40% |
