With a slew of upcoming US earnings just around the corner, the IMF throwing out toxic asset estimates in the trillions and stocks falling globally, the Yen and Dollar were bought in Asia as safe havens.
Traders bailed out of riskier assets, pushing the Yen crosses off a cliff, as we saw the EUR/JPY drop 2 big figures from 133.77 to 131.72, a gloomy assessment of Ireland's banking system added momentum to sellers of the Euro. EUR/USD hit a early high of just over 1.3280, before dropping a little more than a handle to 1.3170 in late Asia trading. Ireland's drastic emergency budget looks to underscore the woes of the ECB as well as undermine the single European currency.
Although Japan's economy is in bad shape, the Yen is still considered an island in the storm, and USD/JPY starting out near 100.75, dropped below 100.00 to touch 99.90 as a low.
GBP/JPY, AUD/JPY and NZD/JPY were all victimized by the Yen strength today. Japan will unveil some new aspects of its stimulus package later today. The higher yielding Aussie and Kiwi Dollars were all lower as risk aversion took over in Asia.
A big day ahead in Germany, with data releases for Trade Balance, Imports/Exports and Factory Orders.....
Upcoming Economic Data Releases (London Session):
| 4/8/2009 | 6:00 | GE | Trade Balance | FEB | 8.5B | 7.5B |
| 4/8/2009 | 6:00 | GE | Current Account (EURO) | FEB | 4.2B | 5.8B |
| 4/8/2009 | 6:00 | GE | Imports SA (MoM) | FEB | -0.80% | -2.30% |
| 4/8/2009 | 6:00 | GE | Exports SA (MoM) | FEB | -4.40% | -3.30% |
| 4/8/2009 | 6:45 | FR | Trade Balance (Euros) | FEB | -4.5B | -4.2B |
| 4/8/2009 | 9:30 | UK | BRC March Shop Price Index | 8-Apr | ||
| 4/8/2009 | 10:00 | GE | Factory Orders MoM (sa) | FEB | -8.00% | -2.10% |
| 4/8/2009 | 10:00 | GE | Factory Orders YoY (nsa) | FEB | -37.90% | -36.50% |
