News that China will introduce its own stimulus plan looks to have global stock markets content as the risk trades gained in the London session. Asian marts rose more than 4% while European bourses had added about 3% at last glance. Euro was the beneficiary in London trading. EUR/USD jumped more than 100 pips as selling of the USD ''safe haven'' persisted as risk appetite increased. The pair was sitting near 1.2910/20 as the NY session kicked off. EUR/JPY was also about 100 points higher on the back of the nice rally in stocks and was sitting near the 127.90/95 zone.
The data calendar is light in the NY session and thus the focus will once again be on any policy news and the US stock market. Treasury's interim assistant secretary for financial stability, Kashkari, is due to speak on the TARP at 1500GMT and this should be first test for an equity market that wants to be positive today. Look for a reversal to see JPY crosses reverse overnight gains. With top-tier European data and US retail sales due out later this week, the moves and trading opportunities are likely to be plenty.
Upcoming Economic Data Releases (NY Session) Prior Estimate
- 11/10/2008 15:00 US Treasury's Kashkari Speaks on TARP Program in New York 10-Nov
