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Market Session Recaps
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New York Session
Wed, Sep 3 2008, 21:30 GMT
by Forex.com Research Desk
The buck lost ground against the majors in NY trading as a paltry US stock market performance and Bank of Canada rate decision dictated the price action for the most part. Better than expected US economic data -- with factory orders printing a better than expected 1.3% jump in July -- was ultimately shrugged off. US stocks fell a modest -0.2% in broad terms but only because they managed a last minute rally. The Fed's Beige Book, which surprisingly noted that price pressures had increased in all districts, was not liked in equities land and stocks were down nearly -1% following the news.
EUR/USD flirted with the 1.4500 area for the better part of the session and managed to close up about 80 pips near the 1.4495 mark. Positioning ahead of tomorrow's ECB rate decision and statement was likely at play and we feel the dust will not settle for EUR/USD until after US nonfarm payrolls this Friday, to boot. USD/JPY was basically following the goings on in US stocks and fell about -50 pips in the session towards the 108.30 level.
The Bank of Canada provided a pretty dovish assessment while keeping rates on hold. In sum, they expect inflation pressures to moderate while conceding that economic growth has been below their expectations. In terms of rates, the bank said that the current 3.0% level remains "appropriate" and this seems to have led to the strength in CAD as traders likely anticipated a BOC with more willingness to take rates lower sooner rather than later. USD/CAD was absolutely decimated from a NY open near 1.0770 towards a close around the 1.0620 mark.
French employment (0645GMT) and German factory orders (1000GMT) loom as the next key economic data points. French unemployment ranks are expected to decline by a modest -13K in 2Q after plunging -77K prior while German factory orders are forecast to increase 0.3% in July to an annual rate of -2.2% from -6.1%. Weaker than expected data should see some initial EUR selling, but positioning ahead of the ECB rate decision (1145GMT) and statement (1230GMT) could see any major moves reverse rather quickly.
Upcoming Economic Data Releases (Asia Session):
- 9/3 23:50 GMT JN Foreign Buying Japan Bonds 29-Aug ¥557.9B - -
- 9/3 23:50 GMT JN Foreign Buying Japan Stocks 29-Aug -Â¥214.5B - -
- 9/3 23:50 GMT JN Japan Buying Foreign Stocks 29-Aug -Â¥82.8B - -
- 9/3 23:50 GMT JN Japan Buying Foreign Bonds 29-Aug -1419.6 - -
- 9/4 1:30 GMT AU Trade Balance JUL 411M 50M
Published on Wed, Sep 3 2008, 21:31 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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