A pretty quiet start to the week today after the weekend's G20 Meeting in the UK failed as expected to produce any real direction or solutions to the world's economic ills. With no clues offered from the weekend's shindig in London, the Forex markets were languid at best, but the theme was simple, US Dollar higher. The Dollar made gains against most majors today, mostly based on technical factors.
EUR/USD opened about 50 pips lower, near 1.2890, hit a quick low of 1.2833 and then clawed its way back to the 1.2900 levels by sessions close, all done in an orderly fashion. A good sign out of the US was Fed Chairman Ben Bernanke stating that the end of the recession was ''probably'' in sight provided that the government keeps banks afloat. EUR/JPY opened lower and dropped to 125.50 before blasting off to touch highs over 127.10 as the equity markets rallied, the Nikkei jumping over 2% on the day as perception of a turnaround was contagious.
USD/JPY showed the Dollar's muscle as it rebounded from a 97.55 low and topped out at 98.50 before ending the session closer to 98.22. The US and Japan will be in the spotlight this week with both a FOMC and BoJ rate decisions due later in the week. In the case of the FOMC, it's not so much the rate decision in this instance, but the statement after, and the possibility of details for the US to buy toxic assets or long term bonds that will spark the markets.
In the mean time tonight's data is thin, with the Euro Zone CPI and Employment coming in later at 10:00GMT.
Upcoming Economic Data Releases (London Session):
| 3/16/2009 | 10:00 | EC | Euro-Zone CPI (MoM) | FEB | -0.80% | 0.40% |
| 3/16/2009 | 10:00 | EC | Euro-Zone CPI (YoY) | FEB | 1.10% | 1.20% |
| 3/16/2009 | 10:00 | EC | Eurozone Employment (QoQ) | 4Q | -0.10% | - - |
| 3/16/2009 | 10:00 | EC | Eurozone Employment (YoY) | 4Q | 0.80% | - - |
| 3/16/2009 | 10:00 | EC | Euro-Zone CPI - Core (YoY) | FEB | 1.60% | 1.60% |
