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Market Session Recaps

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New York Session

Tue, Apr 1 2008, 00:44 GMT
by Forex.com Research Desk

FOREX.com

The USD see-sawed in range-bound trading conditions on the last day of the month, with the big moves coming on the back of a melt-down in commodity markets.  EUR/USD broke above recent range highs around 1.5850, but came up short of making a new all-time high above 1.5905 as oil prices plunged in anticipation that weekly inventory data would show another increase in stockpiles.  Oil also came under pressure after Iraqi oil pipelines, that had been sabotaged last week, came on line again, resulting in only minor disruption to supplies.  Higher oil prices have been closely correlated with a weaker US dollar; when oil prices reverse, the USD has tended to benefit.  More broadly, the slowing US economy pointed to reduce demand for energy and other raw materials, contributing to a decline in precious metals as well.  Oil prices fell nearly 4% on the day, initially gaining to just below $107/bbl and then falling to nearly $100/bbl before rebounding to close around $101.70/bbl, catching currency traders short of USD.  After stalling just below 1.5900, EUR/USD gave back all the day's gains and fell back toward the day's lows around 1.5770.  USD/JPY remained trapped in a narrow range between 99-100 yen for the NY trading session.  Gold prices tumbled nearly $15 to $916.25/oz. as the USD bounced back and commodity traders unloaded excessive long commodity positions.

Despite the doom and gloom in many financial markets lately, the US stock market managed to eke out a small gain on the day, gaining on a better than expected Chicago Purchasing Managers' Index report for March and lower oil prices.  The Chicago PMI registered 48.2, which was better than the forecast 46.0 and the prior reading of 44.5, though the index still remains below the expansion/contraction level of 50.

Key upcoming events in the Asia-Pacific session are the 1Q Bank of Japan Tankan survey of Japanese corporate sentiment and an expected steady interest rate decision from the Reserve Bank of Australia.
 

Upcoming Economic Data Releases (Asia-Pacific Session)

• 3/31  22:30  AU  AiG Performance of Mfg Index  MAR                               51.4        - -
• 3/31  23:50  JN  Tankan Large Manufacturers Index  1Q                            19           13
• 3/31  23:50  JN  Tankan Large Mfg Outlook  1Q                                        15           9
• 3/31  23:50  JN  Tankan Non-Manufacturing  1Q                                        16           12
• 3/31  23:50  JN  Tankan Non-Mfg Outlook  1Q                                           15           10
• 3/31  23:50  JN  Tankan Large All Industry Capex  1Q                               10.50%  0.10%
• 4/1  3:30  AU  RBA CASH TARGET  2-Apr                                               7.25%    7.25%

Published on  Mon, Mar 31 2008, 06:47 GMT