Search
Market Session Recaps
0
0
London Session
Tue, Aug 5 2008, 13:41 GMT
by Forex.com Research Desk
The buck continued to add to its gains in the London session against most of the majors, helped by further collapsing oil prices and another batch of weak European economic data. The Euro-zone PMI composite final release for July was steady at 48.3 but retail sales for June fell to a weaker than expected -3.1% annual rate after a downwardly revised -0.1% run-rate in May. Meanwhile, UK industrial production was also worse than expected and slipped to a -1.6% annual rate after a similar run-rate the prior month. Thus the deteriorating economic data across the pond continues.
Oil prices helped the greenback as well, plummeting to a low of $118/bbl after opening the session near $120.50/bbl. The commodity continues to get crunched by slowing demand. The fact that Tropical Storm Edouard is seemingly less threatening now helped as well. EUR/USD slipped further, from an open near 1.5535 to close around the 1.5495 mark. Sterling (GBP/USD) also lost ground, closing near 1.9550 after an open near 1.9605. USD/CAD traded sideways for nearly the entire session, but held on to gains from the Asia session, closing near 1.0420 after an open near 1.0415.
The highlight in the NY session is obviously the FOMC rate decision due up at 1815GMT/1415ET. The market looks for no change to the policy rate of 2.0% and we concur that rates will remain steady. The statement will be the focus as the market will attempt to digest how the Fed views the risks to growth and inflation. Again, the risk is that the Fed highlights renewed downside 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.
Upcoming Economic Data Releases (NY Session):
- 8/5/2008 14:00 GMT US ISM Non-Manf. Composite JUL 48.2 48.5
- 8/5/2008 18:15 GMT US FOMC Rate Decision 5-Aug 2.00% 2.00%
Published on Tue, Aug 5 2008, 13:43 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.