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Market Session Recaps
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London Session
Fri, Aug 1 2008, 12:03 GMT
by Forex.com Research Desk
The buck was mixed overall in the London session, trading mostly sideways against the majors. Poor data out of the Euro-zone helped the greenback once again overnight. German retail sales for June were disastrous, coming in at -1.4% on the month after a downwardly revised 0.5% gain prior.
Meanwhile, the French PMI manufacturing index for July was revised down to 47.1 from an already poor 47.3 preliminary read. These results kept EUR/USD contained and in a sideways range all session, opening near 1.5562 and closing around the 1.5568 level.
Sterling (GBP/USD) lost ground on the back of some more disappointing economic data. UK PMI manufacturing for July tumbled to a worse than expected 44.3 from 45.9 in June. Thus the pattern of deteriorating economic data across the pond continues unabated. Sterling took a hit on the poor news, slipping to a close near 1.9755 after opening the session around the 1.9825 mark.
USD/JPY saw some action in London trading, but ended the session near where it opened around the 107.60 level. Falling stock prices overnight in both Asia and Europe -- which were down about -2% and -1%, respectively --- helped take the pair as low as 107.32 in the session. In early NY trading, disappointing earnings reports out of the US have nudged USD/JPY back down towards these levels.
All eyes will be on the NFP (1230GMT) and ISM (1400GMT) reports out of the US this morning. The market expects a -75K print for July payrolls after a -62K decline the prior month and the unemployment rate to tick up to 5.6% from 5.5%. An unemployment rate in line with expectations coupled with a better NFP number should see the buck gain sharply.
In terms of ISM, the market expects a pullback to 49.0 from 50.2 and the risk here is that we get a number above consensus. The regional manufacturing indices have improved on the month and suggest a very plausible +50 ISM result. This report has the potential to offset USD losses in case of a disappointing NFP result.
Upcoming Economic Data Releases (NY Session):
- 8/1 12:30 GMT US Change in Nonfarm Payrolls JUL -62k -75k
- 8/1 12:30 GMT US Unemployment Rate JUL 5.50% 5.60%
- 8/1 12:30 GMT US Average Hourly Earnings YoY JUL 3.40% 3.40%
- 8/1 12:30 GMT US Average Weekly Hours JUL 33.7 33.7
- 8/1 14:00 GMT US ISM Manufacturing JUL 50.2 49.0
- 8/1 14:00 GMT US Construction Spending MoM JUN -0.40% -0.30%
- 8/1 US Vehicle Sales JUL 13.6M 13.6M
Published on Fri, Aug 1 2008, 12:05 GMT
Archive
- New York Session
Published On Tue, Dec 2 2008, 22:13 GMT - London Session
Published On Tue, Dec 2 2008, 13:13 GMT - Asia Session
Published On Tue, Dec 2 2008, 07:41 GMT - New York Session
Published On Mon, Dec 1 2008, 22:28 GMT - London Session
Published On Mon, Dec 1 2008, 13:18 GMT
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