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Market Session Recaps

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London Session

Tue, Aug 12 2008, 20:53 GMT
by Forex.com Research Desk

FOREX.com

The sharp pullback in stocks trumped lower oil prices and better than expected US economic data in NY trading as the US dollar was lower against most of the majors.  US stocks pulled back -1.2% on the day as financials stocks plummeted -5.2% on news of more potential credit market losses.  Meanwhile, oil was down about -$0.50 and traded as low as $112.31 before settling near the $113.20 mark.

The US trade deficit surprisingly narrowed to -$56.8B in June from -$59.2B the prior month.  The market was looking for a widening to -$62.0B so the surprise was palpable.  The narrowing in the price adjusted trade deficit also boosts estimates for 2Q GDP to just over 2.5% from a 1.9% advance print.

The market looks to have been focused on stocks though, as EURUSD traded higher in the session, from an open near 1.4890 to a close around the 1.4920 level.  This ends the buck's five day rally against the euro.  USDJPY was sold as yen crosses came under pressure and was sitting near 109.35 after opening at around the 110.20 mark.  It was the same story for USDCAD as the pair plunged from a 1.0705 open to a close near the 1.0635 area.  The 100hr SMA near 106.10 is likely to provide good support for the pair initially.

The Asia session will see some important data releases as Japanese GDP and Australian consumer confidence are on deck.  The market expects a -0.6% QoQ result for Japan's 2Q GDP after a 1.0% print in 1Q.  Look for good JPY selling on a weaker than expected result here.  The Australian Westpac consumer confidence report does not have a market estimate, but if it fails to improve from July's dismal -6.7% look for the market to put some pressure on AUD.  Stay tuned!
 

Upcoming Economic Data Releases (Asia Session):

• 8/12/2008 21:05 GMT NZ Finance Minister Cullen Speaks on Infrastructure
• 8/12/2008 22:00 GMT SZ Tecan Publishes Half-Year Results, Holds Conference Call
• 8/12/2008 22:45 GMT NZ Producer Prices- Inputs (QoQ) 2Q              2.3%           - -
• 8/12/2008 22:45 GMT NZ Producer Prices- Outputs (QoQ) 2Q           1.8%           - -
• 8/12/2008 23:15 GMT AU Reserve Bank Asst Governor Lowe Speaks in Sydney 
• 8/12/2008 23:50 GMT JN Gross Domestic Product (QoQ) 2Q P         1.0%        -0.6%
• 8/12/2008 23:50 GMT JN GDP Annualized 2Q P                               4.0%       -2.3%
• 8/12/2008 23:50 GMT JN Nominal GDP (QoQ) 2Q P                          0.5%       -0.8%
• 8/12/2008 23:50 GMT JN GDP Deflator YoY 2Q P                            -1.5%        -1.5%
• 8/12/2008 23:50 GMT JN Current Account Total JUN                      Â¥2000.6B    Â¥490.2B
• 8/12/2008 23:50 GMT JN Adjusted Current Account Total JUN        Â¥2032.7B    Â¥1084.0B

Published on  Tue, Aug 12 2008, 20:55 GMT