New York Session

Market Session Recaps

The NY session saw the risk trades that prevailed overnight come off as poor company earnings reports eclipsed the positive headline reaction from the China stimulus plan. US stocks reversed more than -3.5% from early intraday highs and closed the day down more than -1.2% in broad terms. Bonds rallied as the flight to safe assets won out with the 2-year US Treasury yield dropping more than -8 bps to 1.24%.

This had JPY crosses depressed all session. USD/JPY sank more than -140 points as the unwinding of carry trades overwhelmed the buying of ''safe haven'' US dollars. The pair was sitting near 97.80 ahead of the close. EUR/JPY plunged a more impressive -315 pips towards the 124.80/90 area. Euro selling was also prevalent against the buck as EUR/USD plunged more than -130 points to 1.2760/65.

The flavor for the upcoming Asia and London sessions is now likely the continuation of risk aversion. If Asian marts follow through and head markedly lower, look for another commensurate leg-down in JPY crosses. Euro could also be in for a rough night as the release of the German ZEW looms (due out at 1000GMT) and is likely to disappoint.

Upcoming Economic Data Releases (Asia Session) Prior Estimate

11/10/2008 23:50 GMT JN Current Account Total SEP Â¥988.8B Â¥1400.0B
11/10/2008 23:50 GMT JN Adjusted Current Account Total SEP Â¥903.2B Â¥1024.1B
11/10/2008 23:50 GMT JN Trade Balance - BOP Basis SEP -Â¥236.0B Â¥236.3B
11/10/2008 23:50 GMT JN Bank Lending Banks Adjust YoY OCT 2.20% - -
11/10/2008 23:50 GMT JN Bank Lending incl Trusts(YoY) OCT 1.60% - -
11/10/2008 23:50 GMT JN Bank Lending Banks ex-Trust Y% OCT 1.80% - -
11/11/2008 0:01 GMT UK BRC October Retail Sales Monitor 17-Nov
11/11/2008 0:01 GMT UK RICS House Price Balance OCT -84.00% -86.00%
11/11/2008 0:30 GMT AU NAB Business Confidence OCT -8 - -
11/11/2008 0:30 GMT AU NAB Business Conditions OCT -1 - -
11/11/2008 4:30 GMT JN Bankruptcies (YoY) OCT 34.40% - -
11/11/2008 5:00 GMT JN Eco Watchers Survey: Current OCT 28 27.4
11/11/2008 5:00 GMT JN Eco Watchers Survey: Outlook OCT 32.1 - -

Published On Mon, Nov 10 2008, 22:15 GMT

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