Is there a light at the end of the tunnel? Speculation that Lehman Brothers could be close to a deal to save the company propelled US equity markets higher helping to boost the JPY carry trade while the USD was lower against the EUR and GBP at the end of the NY session. However, in Asia we have seen mostly back and forth action as uncertainty of the outcome remains.
On the economic front, Kiwi retail sales came in at -.8% month over month worse than expectations of -.3%. Combined with the larger than expected rate cut yesterday by the Reserve Bank of New Zealand, it seems that the fundamental picture remains weak there as the global slowdown spreads.
Looking forward it continues to be a traders' market with wide ranges and fast price action. While speculation is that a deal could be announced over the weekend look for tomorrow to be whippy as traders position themselves for a potentially volatile opening on Sunday.
Upcoming Economic Data Releases (London Session):
- 12-Sep 6:30 FR Bank of France Bus. Sentiment AUG 92 92
- 12-Sep 6:45 FR Consumer Price Index (MoM) AUG -0.20% 0.10%
- 12-Sep 6:45 FR Consumer Price Index (YoY) AUG 3.60% 3.30%
- 12-Sep 6:45 FR CPI - EU Harmonised (MoM) AUG -0.30% 0.10%
- 12-Sep 6:45 FR CPI - EU Harmonised (YoY) AUG 4.00% 3.70%
- 12-Sep 6:45 FR CPI Ex Tobacco Index AUG 118.69 118.81
- 12-Sep 7:30 EC Euro-Area Finance Ministers Meet in France 12-Sep
- 12-Sep 9:00 EC Eurozone Employment (QoQ) 2Q 0.30% - -
- 12-Sep 9:00 EC Eurozone Employment (YoY) 2Q 1.60% - -
- 12-Sep 9:00 EC Euro-Zone Ind. Prod. sa (MoM) JUL 0.00% -0.20%
- 12-Sep 9:00 EC Euro-Zone Ind. Prod. wda (YoY) JUL -0.50% -1.00%
- 12-Sep 10:30 UK BOE's Tucker Makes Speech 12-Sep
