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Market Session Recaps

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New York Session

Wed, Jul 16 2008, 23:34 GMT
by Forex.com Research Desk

FOREX.com

It was quite a session for the buck in NY as a strong rebound in stock markets coupled with plunging oil prices helped rocket the greenback higher.  US stocks were bid on better than expected earnings in the financials space.  The broad market was up 2.5% on the day while financials rose a whopping 12.3% -- the best one day result ever.

Meanwhile, oil prices plunged for the second day in a row as weekly inventory data showed a build of 3 million barrels while the market was expecting a decline -2.2 million.  This sent oil prices as low as $132/bbl before settling near $134.50/bbl at the session close.  EUR/USD was markedly lower on this and the equity market rally, opening near 1.5935 and closing near the 1.5825 mark.

USD/JPY was higher by about 125 pips with US yields jumping in the session, as stock buying was all the rage and traders sold bonds.  The 2-year rose 9 bps to 2.42% while the 10-year added 12 bps to 3.93%.  This took the pair from an open near 103.88 to a close around the 105.15 level.

Tomorrow will be another critical day for the buck as more US financial companies report results.  Moreover, we will see the latest weekly initial jobless claims data which are expected to tick up somewhat after the sharp pullback the prior week.  More positive results out of the financials space and a not too shabby claims number should help push USD higher.
 

Upcoming Economic Data Releases (Asia Session):

• 7/17  1:30  AU Preliminary BoP Imports MoM sa JUN                      7.00%           - -
• 7/17  5:00  JN Leading Index CI MAY F                                         92.60%           - -
• 7/17  5:00  JN Coincident Index CI MAY F                                    103.00%           - -
  

Published on  Wed, Jul 16 2008, 23:35 GMT