Search
Market Session Recaps
0
0
New York Session
Mon, Aug 4 2008, 23:18 GMT
by Forex.com Research Desk
The greenback was bid in the NY session as better than expected US economic data and a sharp decline in oil prices helped take the buck higher. Oil fell below $120/bbl for the first time since early May and closed the session down about -$4 near $121.10/bbl.
Meanwhile US personal income, spending, and core PCE were all above expected. Spending rose 0.6% for June while income rose a modest 0.1% for the month. Both were well above the expected 0.4% and -0.1% prints, respectively. Also core PCE prices rose to 2.3%, above the 2.2% expected and now well above the Fed's 1-2% comfort zone -- likely keeping the Fed in play in 2008 for now.
EUR/USD opened the session near 1.5590 and was sitting modestly lower towards the session close around 1.5575. GBP/USD got hit a little harder, falling towards 1.9625 from an open near 1.9680. Lower oil prices took USD/CAD firmly above the 1.0300 mark finally, with the pair closing near the 1.0365 level after opening near 1.0305.
All eyes are now focused on tomorrow's FOMC rate decision. We expect the Fed to stay on hold at 2.0%, which is also the consensus market expectation. The FOMC statement is likely to retain much of the same language as the June statement, so this may turn into a non-event. But the risk is that the Fed highlights renewed downside risks to the US outlook, reigniting fears of a US recession still to come. We continue to favor buying USD on dips, as slowing global growth is undermining demand for commodities and reducing overall USD selling interest. Stay tuned!
Upcoming Economic Data Releases (Asia Session):
- 8/5/2008 3:00 GMT NZ ANZ Commodity Price JUL 0.00% - -
- 8/5/2008 4:30 GMT AU RBA CASH TARGET 6-Aug 7.25% 7.25%
Published on Mon, Aug 4 2008, 23:20 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
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!
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]
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 trade 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.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.