The price action in the NY session was on the light side as correlations between FX and stocks broke down some. US stocks plunged more than -2.5% as a last minute selloff capped what was an otherwise choppy trading day. The economic data out of the US were mixed as the NY Empire index came in at a horrible -25.4 (with weak details to boot) while industrial production increased much more than expected (though this was related to a post-hurricane bounce). Equities made a brief attempt into positive terrain but eventually could not hold on.
USD weakness was the flavor for nearly the entire session but a late day rally (as stocks sold off) had the buck relatively unchanged in the NY session. EUR/USD was sitting right where it opened in NY around the 1.2650 area. USD/JPY was roughly -10 pips lower near 96.30/40 while EUR/JPY fell by a similar amount towards the 121.80/90 area. USD/CAD fell more than -40 pips to 1.2270/80 despite the decline in oil prices to intraday lows just above $55/bbl. Much of the price action in oil was driven by option expiry and we would expect the correlation of lower oil = higher USD/CAD to be back tomorrow.
Upcoming Economic Data Releases (Asia Session) Prior Estimate
- 11/17/2008 23:50 GMT JN Housing Loans YoY 3Q 3.90% - -
- 11/18/2008 0:30 GMT AU Reserve Bank's Board November Minutes 18-Nov
- 11/18/2008 0:30 GMT AU Preliminary BoP Imports MoM sa OCT - - - -
- 11/18/2008 5:00 GMT JN Leading Index CI SEP F 89.2 - -
- 11/18/2008 5:00 GMT JN Coincident Index CI SEP F 100.8 - -
- 11/18/2008 5:30 GMT JN Tokyo Dept. Store Sales (YoY) OCT -4.60% - -
- 11/18/2008 5:30 GMT JN Nationwide Dept. Sales (YoY) OCT -4.70% - -
