The Yen was victimized against every other currency today, but this is a sign that risk aversion is now long gone from the markets as traders are more inclined to seek better returns in riskier assets. The markets have reacted well to the US Treasury plan to buy toxic assets to the tune of $100 Billion, but remember that the market is fickle....USD/JPY just exploded in the Asian session, erasing early lows near 96.90 with highs through the 98.00 big figure. EUR/JPY pinned a 5 month high as it cruised from just over 132.00 to just over 134.00 over the course of the day.
GBP/JPY was well bought by traders getting back into the riskier assets, moving from a touch over 141.00 to a level just over 144.00 heading into the European session. We might as well throw AUD/JPY and NZD/JPY into the mix, as AUD/JPY moved higher by almost 1 ½ handles and NZD/JPY by almost 1 handle. With the Dollar and Yen now on the short end of the stick, the currencies of Europe and the UK, which were shunned as of late, are now basking in newfound bids. While on the subject of newfound popularity, we should really look no further than the Aussie and Kiwi Dollars...AUD/USD has benefitted from the path the RBA has taken so far, as many look for the 0.7500 level approaching sooner than later. However, for now, the pair moved from 0.7020 to 0.7083, culminating in a high not seen since January. NZD/USD was the same story, hitting a 0.5746 level that hasn't been seen since January as well.
The key here is to see what happens first, the elation fades, or the profit takers come swooping in......
Upcoming Economic Data Releases (London Session):
| 3/24/2009 | 7:45 | FR | Consumer Spending (MoM) | FEB | 1.80% | -0.90% |
| 3/24/2009 | 7:45 | FR | Consumer Spending (YoY) | FEB | 1.80% | -0.40% |
| 3/24/2009 | 7:50 | FR | Business Confidence Indicator | MAR | 68 | 68 |
| 3/24/2009 | 7:50 | FR | Production Outlook Indicator | MAR | -76 | -77 |
| 3/24/2009 | 7:50 | FR | Own-Company Production Outlook | MAR | -46 | -45 |
| 3/24/2009 | 8:00 | FR | PMI Manufacturing | MAR P | 34.8 | 35 |
| 3/24/2009 | 8:00 | FR | PMI Services | MAR P | 40.2 | 40.2 |
| 3/24/2009 | 8:00 | EC | ECB's Papademos, IMF's Belka Speak at Belgian National Bank | 24-Mar | ||
| 3/24/2009 | 8:30 | GE | PMI Manufacturing | MAR A | 32.1 | 32 |
| 3/24/2009 | 8:30 | GE | PMI Services | MAR A | 41.3 | 41 |
| 3/24/2009 | 9:00 | EC | ECB Euro-Zone Current Account SA | JAN | -7.3B | - - |
| 3/24/2009 | 9:00 | EC | PMI Manufacturing | MAR A | 33.5 | 33.5 |
| 3/24/2009 | 9:00 | EC | Euro-Zone Current Account nsa | JAN | 1.4B | - - |
| 3/24/2009 | 9:00 | EC | PMI Services | MAR A | 39.2 | 39.2 |
| 3/24/2009 | 9:00 | EC | PMI Composite | MAR A | 36.2 | 36.2 |
| 3/24/2009 | 9:30 | UK | CPI (MoM) | FEB | -0.70% | 0.30% |
| 3/24/2009 | 9:30 | UK | CPI (YoY) | FEB | 3.00% | 2.60% |
| 3/24/2009 | 9:30 | UK | Core CPI YOY | FEB | 1.30% | 1.30% |
| 3/24/2009 | 9:30 | UK | Retail Price Index | FEB | 210.1 | 209.2 |
