Although news of the Federal Reserve's $800 Billion plan to unfreeze credit markets caused initial elation in the Yen crosses in NY trading, quite the opposite occurred in Asia as investors feared that despite the move, a global recession was inevitable. The EUR/JPY provided a fine example, as it peaked at 125.86 in NY trading and briefly flirted with 122.99 in Asia as the Yen was bough on risk aversion as the Nikkei was back in the red. The other Yen crosses followed the same path, with GBP/JPY dropping from NY highs of 148.61 to Asia lows of 145.42, AUD/JPY falling from 63.68 to 61.14, and NZD/JPY sliding from early NY highs of 53.76 to 51.60 lows. The Yen saw some strong bids versus the Dollar in Asia, going from 95.55 to 94.80 in a pretty swift move. Many see the Yen maintaining its strength as global worries continue and further BoJ rate cuts are put off .
In other markets, EUR/USD lost some luster from NY highs of 1.3080 in a risk seeking environment to a risk adverse 1.2946 in Asia. The pair looked to be gaining ground just under 1.3000 in early London trading. Tomorrow should bring a new tug-of-war between the risk ''seekers'' and ''fleers'' in what I must remind you is a holiday shortened week in the US.
Upcoming Economic Data Releases (London Session):
| 11/26/2008 | 7:00 | GE | Import Price Index (MoM) | OCT | -1.00% | -1.40% |
| 11/26/2008 | 7:00 | GE | Import Price Index (YoY) | OCT | 7.60% | 5.00% |
| 11/26/2008 | GE | Consumer Price Index (MoM) | NOV P | -0.20% | -0.30% | |
| 11/26/2008 | GE | Consumer Price Index (YoY) | NOV P | 2.40% | 1.60% | |
| 11/26/2008 | 7:45 | FR | Consumer Confidence Indicator | NOV | -47 | -49 |
| 11/26/2008 | 8:00 | JN | BOJ's Shirakawa to Speak at Tokyo University | 26-Nov | ||
| 11/26/2008 | 8:00 | EC | European Commission Holds Weekly Meeting | 26-Nov | ||
| 11/26/2008 | 9:30 | UK | GDP (QoQ) | 3Q P | -0.50% | -0.50% |
| 11/26/2008 | 9:30 | UK | GDP (YoY) | 3Q P | 0.30% | 0.30% |
| 11/26/2008 | 9:30 | UK | Private Consumption | 3Q P | -0.10% | -0.30% |
| 11/26/2008 | 9:30 | UK | Government Spending | 3Q P | 0.50% | 0.60% |
| 11/26/2008 | 9:30 | UK | Gross Fixed Capital Formation | 3Q P | -2.80% | -1.50% |
| 11/26/2008 | 9:30 | UK | Exports | 3Q P | 0.00% | -0.30% |
| 11/26/2008 | 9:30 | UK | Imports | 3Q P | -0.50% | -0.90% |
| 11/26/2008 | 9:30 | UK | Index of Services (3mth/3mth) | SEP | -0.30% | -0.40% |
| 11/26/2008 | 11:00 | EC | EU's Barroso Holds News Conference on Economic Plan | 26-Nov |
