Market Session Recaps

London Session

Thu, Jul 24 2008, 14:30 GMT
by Forex.com Research Desk

FOREX.com


The US dollar rallied against the majors in the London session helped by weakness in Eurozone and UK data.  French, German and Eurozone PMI manufacturing indices were all weaker than expected for July.  Meanwhile, German IFO business climate sank to 97.5 in July from 101.2 the prior month.  So the weakness in the European economy is palpable to say the least.

The EU's Almunia made some euro negative comments overnight as well by saying flat out that ''the euro is overvalued.''  However, he also went on to note that he believes ''there's a risk that the dollar will slide further against the euro.''  EUR/USD opened the session near 1.5700 and was sitting near the 1.5675 mark at the close.

The news out of the UK was equally dismal.  Retail sales for June plunged -3.9% on the month after a 3.6% gain prior.  This took the annual growth rate in sales to a paltry 2.2% from 7.9% the previous month -- the weakest run-rate since February 2006.  Sterling (GBP/USD) got hit hard on the news, slipping from an open near 1.9980 to close around the 1.9860 level.

The markets now await US initial jobless claims and existing home sales out in the NY morning to provide some price action for the buck.  Look out for further US earnings reports and oil prices to set the tone as well.  The $122 level looks to be a key trigger for further losses in oil prices as it is the bottom of the Ichimoku cloud and the 100-day MA.
 

Upcoming Economic Data Releases (NY Session):

  • 7/24  12:30 GMT US Initial Jobless Claims 19-Jul                          366K           380K
  • 7/24  12:30 GMT US Continuing Claims 12-Jul                             3122K         3160K
  • 7/24  14:00 GMT US Existing Home Sales JUN                            4.99M         4.94M
  • 7/24  14:00 GMT US Existing Home Sales MoM JUN                    2.00%        -1.10%
  • 7/24  14:00 GMT US Fed's Geithner, SEC's Cox Testify Before House Committee

Published on  Thu, Jul 24 2008, 14:41 GMT

Archive

GAIN Capital Group  | 44 Wall Street, 7th Floor New York, NY 10005-2401
http://www.forex.com/ | info@forex.com

Legal disclaimer and risk disclosure

The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Interested in forex trading? forex brokerage firms!


GFT
Contact the broker/FDM
Open a demo account
ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account		Saxo Bank A/S
Contact the broker/FDM
Open a demo account		Deutsche Bank
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.