The US Dollar weakened in Asian trading on fears that the US $700 Billion Rescue Plan would be held up, or watered down in a partisan Congress intent mostly on finger pointing and showboating. Even President Bush flooded the airwaves with dire warnings of a financial system break down if the bill was not passed, however, the word is that most American's are siding against the bailout and as well pressuring their congressional leaders to do likewise. The Dollar suffered on uncertainty as EUR/USD was bid for the better part of the night, starting from lows of just above 1.4600, the pair peaked out at 1.4732, but looked to have more ammunition for the upcoming session. EUR/JPY buying played into the equation as that pair traveled from a155.15 low to a 155.95 high over the course of the session. As of this writing, EUR/JPY looks to break through the 156.00 level at any moment.
USD/JPY lost some ground in thin trading as traders seemed to fear being caught on the wrong side of any announcement or rumor. The dollar slid from 106.30 to 105.74 against the Yen as Asia seemed reluctant to purchase Dollars.
All eyes will be focused on Rescue Plan and how it looks to be fairing in Congress, as of right now, this is the only game in town.....
Upcoming Economic Data Releases (London Session):
- 25-30 SEP UK Nat'wide House prices sa (MoM) SEP -1.90% -1.80%
- 25-30 SEP UK Nat'wide House prices nsa(YoY) SEP -10.50% -12.80%
- 9/25/2008 6:10 GE GfK Consumer Confidence Survey OCT 1.5 1.5
- 9/25/2008 8:00 EC Euro-Zone M3 s.a. (YoY) AUG 9.30% 9.10%
- 9/25/2008 8:00 EC Euro-Zone M3 s.a. 3 mth ave. AUG 9.60% 9.30%
