The US Dollar was given a reprieve at the beginning of the Asia Session as news of Warren Buffett investing $5 billion into Goldman Sachs helped boost, albeit temporarily, confidence in the Greenback. S&P futures popped almost 23 points on the news and a wave of yen crosses were bought as well. The euphoria was short lived as the dark cloud of uncertainty once again blanketed the markets as traders feared that the proposed US $700 Billion Rescue plan would be held up for a prolonged duration in Congress due to partisan politics. At best, the plan was greeted with reservations and even sneers, making the possibility that the plan fails to get through Congress a greater reality.
USD/JPY began the session near 105.50, jumped to 105.87 on the Buffett news and then sank to lows of 105.35. USD/JPY was heavily bracketed by exporter offers at 106.00 and importer bids at 105.00. EUR/JPY jumped to 155.37 early and as well fell to lows of 154.40 when traders figured that the news wasn't that good. EUR/JPY broke back above 155.00 and is currently near 155.20. EUR/USD was choppy and lacked any real direction or motivation, but ended the session a bit higher after a 1.4634 low and a 1.4707 high. Look for German IFO data later in the London session to help set a direction in this pair. Tomorrows continued Congressional sideshow should be the main attraction for all traders....tune in if you can tolerate it.
Upcoming Economic Data Releases (London Session):
- 9/24/2008 6:45 FR Business Confidence Indicator SEP 98 97
- 9/24/2008 6:45 FR Production Outlook Indicator SEP - - -32
- 9/24/2008 6:45 FR Own-Company Production Outlook SEP - - -1
- 9/24/2008 8:00 GE IFO - Business Climate SEP 94.8 94.3
- 9/24/2008 8:00 GE IFO - Current Assessment SEP 103.2 101.9
- 9/24/2008 8:00 GE IFO - Expectations SEP 87 87.3
- 9/24/2008 8:00 EC ECB Euro-Zone Current Account SA JUL -8.2B - -
- 9/24/2008 8:00 EC Euro-Zone Current Account nsa JUL -1.0B - -
- 9/24/2008 10:00 UK U.K. CBI September Distributive Trades Report 24-Sep
