A new week in Asia brings a higher US Dollar as the continued global recession sent traders scurrying away from the risky assets once again. The Greenback made positive gains against the Euro, Yen and got close to record levels in the British Pound in a market thinned by the Lunar New Year holiday, which saw Japan as the only major market player open in Asia today. With investors avoiding UK and European currencies amidst the economic chaos, most looked to the pending stimulus plan as of yet to be revealed by President Obama as a ray of hope for the US economy. EUR/USD opened at highs near 1.2962 and dipped to lows of 1.2860 before ending the session at the 1.2900 levels. Against the Pound, the open of 1.3726 was the high, and that was quickly erased as it skid to just under 1.3550, not surprising as traders digested data from Friday that showed that the British economy has contracted at its fastest rate in over 30 years.
The USD/JPY pair rose from earlier lows of 88.25 as traders cut loose their short Dollar positions ahead of this weeks FOMC meeting in the US. While it is not expected that the Fed will cut rates, all eyes are on the statements that will help many investors plot their near term course through the perilous FX waters. The USD topped out at 89.30ish before fading to 88.90 levels prior to Europe. There will be no pertinent data today in London, but liquidity should creep back into the markets after a session very light in the liquidity department.
Upcoming Economic Data Releases (London Session):
| 1/26/2009 | 9:30 | UK | BBA Loans for House Purchase | DEC | 17773 | - - |
| 1/26/2009 | 11:45 | FR | Lagarde Speaks At Conference in Paris | 26-Jan |
