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Market Session Recaps
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London Session
Wed, Aug 20 2008, 14:32 GMT
by Forex.com Research Desk
The buck was bid in London trading, boosted by poor economic news across the pond. Euro-zone construction output slipped -0.6% in the month of June, taking the annual rate to -2.4% from a downwardly revised -1.6% the prior month. Meanwhile, the Confederation of British Industry's monthly survey showed total orders plunged to -13 in August from -8 in July and +1 in June. Export orders also fell to -9 from -7 the prior month.
The Bank of England meeting minutes showed a split decision on rates, with Blanchflower voting for a rate cut while Besley opted for a rate hike -- the majority obviously opted to keep rates on hold. The current deterioration in the UK economy, coupled with the pullback in commodity prices (which should limit the tough talk on inflation) suggest that the next move in rates is likely to be a down.
EUR/USD slipped towards a close near the 1.4710 mark after opening the session around the 1.4770 level. Sterling (GBP/USD) was crushed more than 100 pips on the weak economic news, slipping towards 1.8565 at the session close. USD strength coupled with a slight pullback in oil prices helped boost USD/CAD as well. The pair opened near 1.0615 and rallied towards 1.0640 in London trading.
USD/CAD should see some good price action early in the NY session as we get some top-tier economic data and weekly oil inventory numbers. Canadian retail sales are expected to increase 0.5% for June after a 0.4% result the prior month. Also, leading indicators for Canada are forecast to rise 0.1% in July after a flat print previously. Both numbers are due up at 1230GMT and we would expect better than expected results to see lower USD/CAD, towards the 1.0600 area initially.
The market will also watch weekly oil inventory numbers at 1430GMT. The expectation is for a 1.0 million barrel build. This release should dictate the price action in oil which should knock USD/CAD around a bit.
Upcoming Economic Data Releases (NY Session):
- 8/20/2008 12:30 GMT CA Leading Indicators MoM JUL 0.00% 0.10%
- 8/20/2008 12:30 GMT CA Retail Sales MoM JUN 0.40% 0.50%
- 8/20/2008 12:30 GMT CA Retail Sales Less Autos MoM JUN 0.40% 0.60%
Published on Wed, Aug 20 2008, 14:53 GMT
Archive
- 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 - Asia Session
Published On Mon, Dec 1 2008, 07:15 GMT
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