The week started in a festive mood today as traders rejoiced to the news that
China unveiled a 4 trillion Yuan stimulus plan yesterday, much to the pleasure of the IMF. Asian equities were higher as were the Yen crosses as investors reveled in the hope that coordinated central bank policies are helping to crack the global credit crisis. EUR/JPY opened almost two big figures higher near 127.00, popped almost 90 pips higher, and eased into the London session near 127.20. All other Yen crosses followed similar paths. USD/JPY opened higher as well on the back of higher crosses, near 98.90, and mostly was quite in a subtle 50 pip range all night.
EUR/USD made a big move over the weekend and after an open over a big figure higher, the pair moved North and South between 1.2899 and 1.2762 in mostly thin markets. The week ahead is loaded with data for the Euro Zone, including GDP and German ZEW before Trichet ends the week as he speaks on Friday.
Look for any announcements by President elect Obama concerning his choice for the next Treasury Secretary to move the FX markets either way depending on market interpretation. As well keep in mind that this Saturday will be the next G20 meeting in Washington DC.
Upcoming Economic Data Releases (London Session):
- 11/10/2008 6:45 SZ SECO Consumer Climate OCT -17 -25
- 11/10/2008 7:45 FR Industrial Production (MoM) SEP -0.40% -0.50
- 11/10/2008 7:45 FR Industrial Production (YoY) SEP -2.60% -1.70
- 11/10/2008 7:45 FR Manufacturing Production (MoM) SEP -0.50% -0.50
- 11/10/2008 7:45 FR Manufacturing Production (YoY) SEP -2.90% -1.80
- 11/10/2008 9:30 UK PPI Input NSA (MoM) OCT -1.20% -2.50
- 11/10/2008 9:30 UK PPI Input NSA (YoY) OCT 24.50% 18.00
- 11/10/2008 9:30 UK PPI Output n.s.a. (MoM) OCT -0.30% -0.50
- 11/10/2008 9:30 UK PPI Output n.s.a. (YoY) OCT 8.50% 7.40
- 11/10/2008 9:30 UK PPI Output Core NSA (MoM) OCT -0.10% -0.20
- 11/10/2008 9:30 UK PPI Output Core NSA (YoY) OCT 5.40% 5.10
- 11/10/2008 9:30 EC Sentix Investor Confidence DEC -27.8 -33
