FXstreet.com

Market Session Recaps

6

0

London Session

Wed, Jan 7 2009, 06:10 GMT
by Forex.com Research Desk

FOREX.com


It was a dose of deja vu in the London session as, much like yesterday, the euro was pummeled. The big number out of the eurozone was the consumer price estimate for December and it came in below expectations at 1.6%, and is a sharp decline from the 2.1% run-rate in November. This leaves the door wide open for the ECB to cut rates in size later this month as the inflation argument continues to become less compelling.

EUR/USD was crushed more than -150 points in London trading and was sitting near the session lows by 1.3310/20 just ahead of the NY open. Expect accelerated weakness here if we get below the 1.3250 level. EUR/JPY was likewise lower and the pair slipped more than -70 pips towards the 1.2520/30 zone.

Crude oil prices continued their upward climb and broke decisively above $50/bbl resistance. This helped fuel another dip in USD/CAD, which shed about -80 pips to the 1.1890 level.
Geopolitical tensions remain the primary driver here and we would not be surprised to see oil prices come off sharply once this subsides. For now, the 1.1820 mark in Loonie is critical support.

Upcoming Economic Data Releases (NY Session) previous forecast

  • 1/6 13:30 GMT CA Industrial Product Price MoM NOV 0.00% -1.00%

  • 1/6 13:30 GMT CA Raw Materials Price Index MoM NOV -12.50% -9.00%

  • 1/6 15:00 GMT US ISM Non-Manf. Composite DEC 37.3 37

  • 1/6 15:00 GMT US Factory Orders NOV -5.10% -2.20%

  • 1/6 15:00 GMT US Pending Home Sales MoM NOV -0.70% -1.00%

  • 1/6 19:00 GMT US Minutes of Dec. 16 FOMC Meeting 6-Jan

Published on  Wed, Jan 7 2009, 06:12 GMT


Archive

Forex.com  | 44 Wall Street, 7th Floor New York, NY 10005-2401
http://www.forex.com/ | info@forex.com

Legal disclaimer and risk disclosure

The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Related reports

Forex Analysis on Majors - Expecting Bullish Break in Euro by Forex Ltd
Tue, Nov 24 2009, 07:59 GMT

Currency on the Day - EURUSD Technical Analysis by Investija.com
Tue, Nov 24 2009, 07:45 GMT

Forex Trading Strategies - Dollar bears take a breather as Asia focuses on bank capital levels by Saxo Bank
Tue, Nov 24 2009, 07:27 GMT

Forex Chartist Technical Analysis - GBP/USD & EUR/USD by Charmer Charts.com
Tue, Nov 24 2009, 07:15 GMT

Daily Technical Analysis - GBP: Attempt small longs at 1.6560; stop below 1.6400 by Mizuho Corporate Bank
Tue, Nov 24 2009, 07:10 GMT

indicator, eurusd, ecb, centralbanks, eurjpy, usdcad

View All

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FX Solutions LLC
Contact the broker/FDM
Open a demo account
Alpari (US), LLC
Contact the broker/FDM
Open a demo account		Deutsche Bank
Contact the broker/FDM
Open a demo account		Alpari (UK) Limited
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.