A quote from the 1987 movie "Wall Street" can sum of the sentiment of the F/X markets: "Man looks in the abyss, there's nothing staring back at him. At that moment, man finds his character. And that is what keeps him out of the abyss". Substitute the word "man" with the words "U.S. dollar". Unfortunately the dollar has not found its character and looks as if may never do so. Overnight we saw the USD make a new all time low against the EURO and the New York session saw the dollar continue to melt away.  The greenback was on the defensive for the entire session. New York traders took EURUSD from the 1.4770/80 area up and through the overnight highs to make a new all time high near 1.4870. USDCHF was taken down from the 1.1080 area down to multi-decade lows near 1.1015.  USDJPY broke key support near the 108.80/109.00 overnight and New York traders had no sympathy for the pair. All rallies in USDJPY were met with good supply as the risk aversion trade was in full force due to lower U.S. equity markets.  The dollar is gasping for air and there is no lifeguard on duty. With nothing major on the data front for the rest of the week we could possibly see more pain for the greenback.  One would think that with the U.S. Thanksgiving Holiday tomorrow the markets may take a breather. However, if you look back to last year's holiday we had one of the most volatile sessions for the year 2006. Here is fair warning to the faint of heart. If the trend continues and we get the same volatility as last year, tomorrow's session could be wicked.

Data is light for the upcoming Asian session.  We have only second tier data coming out of Japan.  Be on the lookout for more weakness in equity markets as well as more bad news from the credit/financial sectors.  These will be the drivers of the markets over the next two days.

Upcoming Economic Data Releases

  • 23:50 Japanese Net Stocks Investment for the week of Nov. 16; No survey, Prior was -JPY392.1b (relevance: low)
  • 23:50 Japanese Net Bond Investment for the week of Nov.16; No survey, Prior JPY907.0b (relevance:low)