This session's big question would have to be whether the moves (or lack thereof), that we saw are a return to the markets prior to the credit turmoil, or a proverbial ''calm before the storm''. I don't have an answer for you, but there is no dismissing the fact that in comparison to the moves we have become accustomed to over the past few months, the past eight hours were like watching paint dry. The big mover of the session was undoubtedly USD/JPY, which saw the Yen strengthen on speculation that there will be no $25 Billion bailout for the big three US auto makers. The USD/JPY pair peaked early at near 97.16, and it was all downhill from there as the pair finally put on the brakes near 96.33 and reversed closer to 96.60 to close out the session. The Yen also gained a bit of steam as the carry trade was once again abandoned, and as it was abandoned EUR/JPY fell from early highs of 122.70 to 121.46. AUD/JPY saw the bigger decline, as it fell from 63.41 early on to 62.14 by session end as Asian stocks looked soft. The AUD/JPY has lost almost 2% from early yesterday, NZD/JPY almost 1%.
The EUR/USD did almost nothing all session and stuck in about a 35 pip range in subdued action. The GBP/USD made a quick break to the downside, but was still unable to beak the 1.4900 figure it had tested earlier in NY. Most other pairs were stagnant, and as stated earlier can this be the beginning, or the end.
Upcoming Economic Data Releases (London Session):
- 11/19/2008 3:50 AU Assistant RBA Governor Edey Gives Speech in Sydney 19-Nov
- 11/19/2008 9:30 AU Reserve Bank Governor Stevens Speaks in Melbourne 19-Nov
- 11/19/2008 9:30 UK Bank of England Minutes 19-Nov
- 11/19/2008 10:00 GE Bundesbank's Reckers Holds Speech in Frankfurt 19-Nov
- 11/19/2008 11:00 UK U.K. CBI November Industrial Trends 19-Nov
