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Market Session Recaps

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New York Session

Mon, Jun 30 2008, 21:59 GMT
by Forex.com Research Desk

FOREX.com

The buck was bid against the majors in the NY session as a near $3 decline in oil prices coupled with an initially better tone to US stocks helped give the greenback a boost.  Economic data out of the US was uninspiring and elicited little market reaction.  The market brushed off the better than expected June Chicago PMI report which beat expectations by rising to 49.6 from 49.1 prior.  In contrast to the headline, the internals of the report were weak with new orders and production weakening and employment remaining in contraction terrain.  Thus expectations for tomorrow's ISM release (1000ET) were left untouched at 48.6 for the June read -- a decline from 49.6 the previous month.

EUR/USD rallied in the early stages of NY trading, rising to a session high 1.5792 after opening near the 1.5784 mark.  The drop in oil and a rise in US stocks (though they would eventually end the day flat) helped the selling in EUR/USD to a low near 1.5732 and the pair would close the session near 1.5755.  German unemployment and retail sales data due up overnight should elicit some price action here and we would expect further EUR selling on weaker than expected results.  The 1.5710/00 remains pretty firm support.

USD/JPY came back after a poor showing in the London session, with the pair opening near the 105.40 mark and closing near the session highs around 106.22.  The mid-session rally in US stocks helped carry the pair as the fear of a collapse in equities that seemed probable in early trading was assuaged.  We look to the Japan Tankan surveys for 2Q due out at 1950ET to offer some volatility in USD/JPY.

The greenback performed the best against its Canadian counterpart in NY trading.  Loonie (USD/CAD) opened the session near 1.0090 and closed near the highs of the session around the 1.0215 mark.  The decline in oil took its toll on CAD and overwhelmed a better than expected April GDP result.  Canadian GDP rose 0.4% in April after slipping a disappointing 0.2% the prior month.  While this likely cements the BOC's decision to stand pat on interest rates near term, it was not enough to offset the pullback in oil prices.
 

Upcoming Economic Data Releases (Asia Session):

• 6/30  23:30  AU AiG Performance of Mfg Index JUN                          51.2           - -
• 6/30  23:50  JN Tankan Lge Manufacturers Index 2Q                         11              3
• 6/30  23:50  JN Tankan Lge Mfg Outlook 2Q                                      7               2
• 6/30  23:50  JN Tankan Non-Manufacturing 2Q                                  12              8
• 6/30  23:50  JN Tankan Non-Mfg Outlook 2Q                                     13              7
• 6/30  23:50  JN Tankan Large All Indust Capex 2Q                           -1.60%      2.00%
• 7/1  1:30  JN Labor Cash Earnings YoY MAY                                   0.60%      0.70%
• 7/1  2:00  NZ Westpac McDermott Miller Employment Confidence Index
• 7/1  4:30  AU RBA CASH TARGET                                                 7.25%       7.25%

Published on  Mon, Jun 30 2008, 21:59 GMT